Grazing Rites

Sometimes my financial decisions seem counter-intuitive, often to just about everyone but myself; for example when I went on my big-ticket technology spending spree in spring with the new PDA and computer. Neither item was a necessity at the time strictly speaking, but interest rates paid on no-risk investments were dropping and inflation was rising. The money could sit in the bank and end up being worth a bit less or I could spend it on something that would end up costing a bit more if I waited to buy it later.

Of course my spending isn’t one-dimensional as that. There’s also my income that fluctuates seasonally.

So I found out today that some of my investments interest rates were dropping by 0.75%.

This is the time of year when I make the most money.

Conclusion? Time to book and pay for a vacation.

It’s not just for me, it’s for the economy. High inflation and dropping interest rates are signs of economic instability or a downturn – spending money generates economic activity that can assist a recovery.

So, not only does it make good economic sense to go on a vacation, it will help the economy recover.

It’s my duty as a citizen of our economy to go on vacation – it’s a sacrifice I’m willing to make. Good ol’ me, always willing to take one for the team.

I’m not worried, when Obama takes office in January the economy will begin a significant recovery, I’m just doing my part in the meantime.

This entry was posted on August 17, 2008 at 1:43 pm and is filed under Economics. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.