Quote:
Originally Posted by The Demon
How about how much value the dollar has lost in 2 years?
|
I'm not sure how much help this is, but if you look at the last 2 years, here is what the dollar index has done:
March 2008 to March 2009 (this is during the meltdown) US Dollar index rallied from 71 to 89
March 2009 to Dec 2009 (this is during the recovery period in equities and commodities) US Dollar index fell from 89 to 74.
Dec 2009 to date US Dollar index rallied from 74 to 81
Quote:
|
I've been into economics for a while and perhaps I misread this, but please explain how a reduction in dollar denominated debt is deflation? If anything, it is inflation reduces the value of the dollar and really, the debt related to the dollar.
|
Seriously? I'll be happy to explain it, but perhaps you should investigate this a bit more.
Quote:
|
Yea, you'll need to explain this because I'm not buying it.
|
Well, I'm not sure what more I can explain. Commodity prices on the whole have collapsed from their highs. I mentioned that Gold and Sugar were exceptions in that they exceed their 2008 highs. If hyperinflation and US dollar demise was real
today, then commodities priced in dollars would be in bull markets.
This is not the case and it is not solely my opinion. I used the CRB to illustrate, but go look at the charts of individual commodities.