Part of the formulation includes the stock markets as well, and overall, the markets weren’t faring as well as I’d like to see, especially retail and related segments. It appears as though that as an industry, retail sales had an average of 8% loss in volume which kept the trading slow and low. But we need to remember as well that this is the holiday season, and many investors are vacationing.
But as usual, the biggest part of the equation, and one that I feel is largely ignored is the exchange rate. The news today states that the exchange rate for the US dollar against both the Euro and the Yen was pretty stable with the light trading conditions. To a point this is a good situation. But on the other hand, the US dollar lost a lot of ground against world currencies, especially the Euro and Yen, as well as the Rial back in Jan/Feb of this year. Surprisingly, the decline in the value of our currency occurred at the same time as it became clear that Obama was going to be the Dems choice for the Presidential bid.
Of course, seeing as I like to look under the rocks in our back yard a little differently than other people do, I come to different conclusions. But sometimes I am right. Here are the latest exchange rates from GoCurrency.com if you are interested in real info…
So what does this mean for Maine? Well, in my humble opinion, I would say we are going to see low energy costs for at least another month, but if I were you I would try to get a locked in heating fuel rate for the rest of this season as soon as possible. It wouldn’t hurt to get locked in for the ’09-’10 season as well, if possible. With the coming stimulus packages that the Great B.O. is promising will come an increased taxation and increased regulation to us all, causing an abrupt rise in the cost of doing business here in the US.
The big question is whether or not we are going to let the socialist leaning government of Maine follow suit and increase taxes and regulation along with the national level government, encouraged by the Great B.O. and Madame Pelosi’s maniac desires. Will comrade Baldacci swallow his leftist pride and do what is best for Maine, or will he just go along with the crowd and let Hannah Pinegree have her merry way, egged along by her C. Pinegree’s foolish philosophies. I looked at a picture of Chellie at a speech. The expression on her face reminded me of a raving lunatic, just like Pelosi. You don’t suppose they’re from the same test tube do you?
But we’ll see what happens over the first quarter of 2009. I really don’t expect much good to come of it. I do expect these people to drive up the cost of living in Maine though.
That’s Dan’s Maine View for today.