Are prices going up or is the dollar going down?

As seen in The Oakland Press

October 26th, 2025

Are prices going up or is the dollar going down?

by Ken Morris

In today’s world, everything just looks and feels larger. Take Halloween for example. Decorative skeletons are now the size of telephone poles. Buying in bulk at a warehouse store is one thing, but if you’re planning ahead for a Halloween party, you need to buy a freezer full so your purchase won’t spoil. Travel overseas and the roads are strewn with vehicles that look like they’ve shrunk. In short, and for a variety of reasons, everything is bigger in the USA.

Being a practical person, when I see a 15-foot-tall Halloween skeleton in someone’s yard, I wonder where they store it for eleven months. And I ask myself if everyone having so much stuff is the reason why storage facilities seem to be popping up across the landscape.

Don’t get me wrong, I enjoy Holiday decorations. I also think it’s admirable to try to stretch your dollars by buying in bulk. But at the end of the day, I have concerns. And as consumers, I think we need to pause and review our spending habits. Especially since the last few years of inflation have led many economists to believe we may be on the brink of a recession.

I want to support our local auto industry, but I’m concerned that more and more sales are being financed by 72-month loans. Some even longer. No wonder recent reports show that defaults on vehicle loans are on the rise. And the cost of maintenance and upkeep on vehicles is following suit.

As far as warehouse shopping is concerned, I believe buying in bulk saves money. But I also believe that many warehouse shoppers leave the store with impulsive purchases.

Another reason I feel consumers need to be cautious is the declining purchasing power of the US dollar as measured against other currencies. Dollar debasement doesn’t mean hiding spare cash downstairs next to your freezer full of frozen food. Rather, it means investors globally are seeking ways to move away from our dollar, which is currently the world’s reserve currency. In other words, alternatives to the US dollar.

We’ve all become accustomed to a fairly strong dollar, which, since World War II, has been the currency used in virtually all global trading. But since the beginning of this year, the US Dollar Index has fallen about 8% as measured against other global currencies. Additionally, the price of many commodities, such as gold and silver, have surged over the past year. So has the price of many cryptocurrencies. n other words, people are looking for places other than the dollar to store some of their wealth.

Ongoing global tensions and our nation’s surging debt are two reasons that contribute to de-dollarization. Unfortunately, those issues are out of the hands of consumers.

Obviously, the dollar doesn’t go as far today as it used to. But to say prices are rising everywhere isn’t totally accurate. The weakening dollar is also responsible.

As the world becomes more economically intertwined, money becomes more complex. We’ve become accustomed to the dollar being the only game in town. Perhaps too accustomed. The world is changing. Everything around us seems to be getting larger, perhaps except the US dollar. I’m not preaching doom and gloom, but investors need to be aware of the dollar’s status.