Friday, August 15, 2008

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).

7 Comments:

At 8/15/2008 6:45 PM, Blogger bobble said...

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

 
At 8/15/2008 9:43 PM, Anonymous Anonymous said...

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.

 
At 8/15/2008 10:39 PM, Blogger OBloodyHell said...

This comment has been removed by the author.

 
At 8/15/2008 10:43 PM, Blogger OBloodyHell said...

> 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.

 
At 8/16/2008 1:24 AM, Blogger VH said...

...And commodities (yes, that includes crude oil) have been going down, down, down:) Yippee!

 
At 8/16/2008 7:28 AM, Anonymous Anonymous said...

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.

 
At 8/16/2008 8:21 AM, Anonymous QT said...

Anon.

Actually, there is no evidence that Lenin ever made such an assertion:

Lenin and inflation

 

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