Tuesday, November 3, 2009

The Sinking Dollar and The Steady Cross

The other day I opened up our latest statement on our retirement account and gasped as I looked at the two columns “Current value” versus “Value one year ago”. Ouch! Even though the markets appear to be doing better than earlier in 2009, we still have a long way to go before confidence is restored on Main Street and Wall Street.

The economic road to recovery has a dangerous and growing pothole. Experts are concerned over the declining value of U.S. currency. The dollar is traded daily on the Foreign Exchange Market. Its value is determined by its relation to other currencies on the market like the European euro, the Japanese yen or the Canadian dollar.

Here is the concern – from March to September the dollar has fallen 14.9% against the euro. What is affecting the value of the dollar? There is a mix of technical things, but a major issue is the growing U.S debt, currently at $12 trillion. As investors see the massive and growing debt, it reduces their confidence and they invest elsewhere, like other currencies.

What is the big negative to Main Street? If the dollar keeps sinking, the costs of our foreign goods will start climbing. That is inflation. By the way, what in your home has stamped on it “Made in China, Japan, Mexico” or some other country?

There is so much economic instability right now. We Americans are so used to our government’s wealth, our personal capacity to make and spend or the generosity of others. As a result, when something cleans out the American pocket book, it knocks the legs right out from underneath us.

Is there anything that is sure in this unstable world? Yes. There is only one thing that is a constant and stable source of trust – the person Jesus Christ.

Around 38 A.D. Jesus was tortured then died on a wooden cross. His blood stained that cross. His life and blood was unlike any other. Its value was enough to pay for the debt and penalty of the sin of the world’s population. Through His death, then His resurrection three days later, you and I can be saved from our sin and given a future and hope.

Jesus Christ. He is a sure investment. No matter the conditions of our world, He is a rock that remains. Jesus said, “Let not your hearts be troubled. Believe in God; believe also in me.” (The Bible, John 14:6, ESV) May He be your source of hope for today and all eternity.