Gas prices throughout the world are nearing record highs, impacting the middle and lower classes. Robot Forex understands that Americans in particular are heavily reliant on automobiles, especially in less urban areas. This will cause many to either change their spending habits or limit their gas consumption. With upbeat quarterly profit reports that largely surpassed expectations, large world economies like China, India, and the UK are beginning to report higher inflationary pressures. The U.S. consumer has been particularly hit hard by the current economic situation. While companies enjoy large profits, the unemployment rate is still near 9.0%.
According to economists, a short-term tax or temporary spike in fuel prices are unlikely to cause a change in consumer behavior. Historically however, prolonged tax increases or high gas prices will negatively impact economic growth. Consumers will either shift their driving habits or simply spend less. Simultaneously, companies will pass transportation surcharges to the consumer, creating an additional burden for buyers. To make matters worse, with the dollar quickly depreciating in value, many of the items we take for granted at large retailers will be more expensive.
Robot Forex believes that a combination of governmental debt, high gas prices, and continued inflationary pressures will cause the economy to sputter after several consecutive months of growth. With so much volatility in the market, there is always tremendous opportunity to make serious money on the Forex Exchange.