Europe has debt deal, Dollar decline picks up

It now takes $1.40 to buy a Euro, and even fewer yen than yesterday. I know this gets boring and it is frustrating the hell out of me that the financial press still don’t get it – when the dollar drops, the price of everything traditionally priced in dollars goes up. The Dow being at a high is not because of Walmart sales reports – it’s almost all due to the weaker dollar. The US dollar is no longer the yardstick that people use to measure value. That’s what happens when you monetize debt.

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2 Responses to Europe has debt deal, Dollar decline picks up

  1. Piquerist says:

    In addition to the problems that monetizing causes is the cruel form of taxation it represents, especially to people on fixed incomes, most notably seniors and retirees. As the cheapened dollar buys less and less and prices go up and up, these persons life styles must necessarily decline. Gee, eventually, they may have to turn to Uncle Sugar for help. Whattya know?

  2. Art Stone says:

    The dollar lost about 3% for the day, and stocks oils and gold went up 3% – yet the talking heads think this means the debt agreement is good for America.

    China is a key player in propping up Europe. Their price? A seat at the table of the global currency market.

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