Comments on: Why the Current US Dollar Chart Tells a Drastically Different Story than the World’s Financial Pundits http://www.theundergroundinvestor.com/2009/05/why-the-current-us-dollar-chart-tells-a-drastically-different-story-than-the-world%e2%80%99s-financial-pundits/ The definitive investment blog for investment news not discussed in the mainstream media Wed, 10 Mar 2010 10:39:55 -0600 http://wordpress.org/?v=2.9.2 hourly 1 By: daughter of an economist http://www.theundergroundinvestor.com/2009/05/why-the-current-us-dollar-chart-tells-a-drastically-different-story-than-the-world%e2%80%99s-financial-pundits/comment-page-1/#comment-45570 daughter of an economist Tue, 30 Jun 2009 00:06:42 +0000 http://www.theundergroundinvestor.com/?p=1042#comment-45570 I would disagree with calling such loose monetary policy/bubble inflation as 'Keynesian' (a much abused term these days even among those who should know better). Keynes himself noted around the time of the great depression that looser monetary policy does not help during severe recessions. As for the gold standard? There's so much disinformation about gold and monetary history that there's no point in even addressing it apart from telling people to crack open some economic history text books. I would disagree with calling such loose monetary policy/bubble inflation as ‘Keynesian’ (a much abused term these days even among those who should know better). Keynes himself noted around the time of the great depression that looser monetary policy does not help during severe recessions.

As for the gold standard? There’s so much disinformation about gold and monetary history that there’s no point in even addressing it apart from telling people to crack open some economic history text books.

]]> By: Adamo http://www.theundergroundinvestor.com/2009/05/why-the-current-us-dollar-chart-tells-a-drastically-different-story-than-the-world%e2%80%99s-financial-pundits/comment-page-1/#comment-45569 Adamo Mon, 29 Jun 2009 05:21:15 +0000 http://www.theundergroundinvestor.com/?p=1042#comment-45569 We're in the midst of a global debt-deflationary cycle. Close on 70% of the world's debt is denominated in dollars, thus creating an enormous underlying demand for dollars. The dollar will strengthen, just as it did during the worst of the crisis Oct-Mar. The dollar has softened only since the 'green shoots' nonsense gained a foothold. When that dies the dollar will be back. We’re in the midst of a global debt-deflationary cycle. Close on 70% of the world’s debt is denominated in dollars, thus creating an enormous underlying demand for dollars. The dollar will strengthen, just as it did during the worst of the crisis Oct-Mar. The dollar has softened only since the ‘green shoots’ nonsense gained a foothold. When that dies the dollar will be back.

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