Middle East Oil Concerns Affect U.S. Wallets

As tensions in the Middle East rise after political uprisings in Egypt, Tunisia and now Libya, many Americans are beginning to understand the effects of global politics on our local economies. If a revolt were to take place in an oil producing country, oil production would drop dramatically or simply halt altogether while the country sorts itself out. Nations largely dependent on importing oil for daily operations, like the United States, would immediately feel the impact of such an event. Gas prices at the pump would skyrocket as the price of a barrel of oil would easily shoot past the $100/barrel mark it’s at currently.

Gas Prices Hurt American Savings

While U.S. Treasury Secretary Tim Geithner says there’s nothing to worry about, many people have already seen first-hand how local pump gas prices have climbed in recent weeks. When our own wallets are impacted by events that occur half way around the world, it puts things into a wider perspective.

Aside from oil, other commodities such as cotton and corn are seeing higher prices as well. It’s more important now than ever to cut down debt and increase savings. Other problems affecting the economy include an ailing housing market, a lack of jobs and increased health care costs. How are you investing for the future?

If you haven’t done so, start by opening a high yield savings account. While your interest there will grow, you can also open a CD account in order to accelerate that growth. The stock market may be due for a pull back since enjoying a 2 year bull market, and nobody knows if gold and silver are bubbles just yet. The only certainty is with deposit accounts, which are guaranteed by the FDIC to return a certain percentage regardless of the greater economy. Sometimes the safe bet is the right one.