The Dollar Bears Are Still Wrong
The weak-dollar meme has been around for as long as the hyperinflation meme, perhaps longer. Ever since the Federal Reserve started to engage in "extraordinary measures" to bring interest rates down, the dollar bears have come out of hibernation to predict the imminent collapse of the currency.
Their argument was always the same: The Fed was printing money and thus debasing the currency. The problem is, if you look at the Dollar Index over the period that the Fed has been engaging in these measures, it has gone up, not down. The dollar index was at 79 in 2008, when the crisis really started to unfold, and it's at 84 today -- a gain of about 5%....645 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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