Dollar Summer Rally Continues
The U.S. dollar index (major currencies) ended the week at close an 11-month high, the highest level since mid-September 2007 (see graph above). CARPE DIEM
Professor Mark J. Perry's Blog for Economics and Finance
Friday, August 15, 2008
About Me
- Name: Mark J. Perry
- Location: Washington, D.C., United States
Dr. Mark J. Perry is a professor of economics and finance in the School of Management at the Flint campus of the University of Michigan. Perry holds two graduate degrees in economics (M.A. and Ph.D.) from George Mason University near Washington, D.C. In addition, he holds an MBA degree in finance from the Curtis L. Carlson School of Management at the University of Minnesota. In addition to a faculty appointment at the University of Michigan-Flint, Perry is also a visiting scholar at The American Enterprise Institute in Washington, D.C.
Previous Posts
- The Republicans Are Coming..... to the Twin Cities
- Corporate Taxes Are Harmful for Growth
- America The Uncompetitive
- Private Health Care: Canada (.69%) v. US (11.6%)
- With Core Inflation At 2.5%, Inflation's Not a Worry
- Obama Delares War On Two-Income Families, Would Im...
- House Sells for $1 in Detroit
- ExxonMobil CEO Defends High Profits: Exxon Spends ...
- King Dollar Summer Rally:Index Hits 10-Month High
- New Online Service for Hedging Weather Risk
7 Comments:
i'm happy to see the dollar going up.
but it may not all be good . . .
1. the dollar is most likely going up due to the growing perception that europe and japan are going into recession. thus, those central banks will be lowering interest rates which will be positive for the dollar.
2. the dollar going up is going to hurt US exports, which have been the only bright spot in the economy lately. exports will also be hurt by the aformentioned europe/japan recessions
Japan wants to sell you a Toyota, of course they want your job too but that's another story. Glad I didn't sell the Hummer though.
This comment has been removed by the author.
> 2. the dollar going up is going to hurt US exports, which have been the only bright spot in the economy lately.
bobbie, I think the lack of anything resembling a recession, despite the Mortgage issue and the housing bubble issue, might qualify as a "bright spot". But that's just me.
...And commodities (yes, that includes crude oil) have been going down, down, down:) Yippee!
Lenin is said to have declared that the best way to destroy the Capitalist System was to debauch the currency. By a continuing process of inflation, Governments can confiscate, secretly and unobserved an important part of the wealth of their citizens. By this method they not only confiscate, but they confiscate arbitrarily; and, while the process impoverishes many, it actually enriches some. The sight of this arbitrary rearrangement of riches strikes not only at security, but at confidence in the equity (or fairness) of the existing distribution of wealth.
As the inflation proceeds and the real value of the currency fluctuates wildly from month to month, all permanent relations between debtors and creditors, which form the ultimate foundation of capitalism, become so utterly disordered as to be almost meaningless; and the process of wealth-getting degenerates into a gamble and a lottery.
Anon.
Actually, there is no evidence that Lenin ever made such an assertion:
Lenin and inflation
Post a Comment
<< Home