A currency reflects the inflation or productivity differential between two countries.
The country with the lowest inflation and highest productivity has the strongest currency.
Inflation is soaring in the US. Inflation (at the consumer level) of medical care, transportation, and food ranges in the 4.4%-5.8% range. If you do not drive or eat, inflation is 2.2%.
Prices at the producer level (finished goods) are up torrid 6.1%. Prices of intermediate goods soared 5.6% in the past 12 months, and prices of raw materials leaped 25.7% in the same period.
The politicians keep promising and we keep asking. But prices are bound to rise if we do not produce efficiently the goods we want.
The dollar has been sinking because our priorities are absolutely wrong!
Hello! Is anyone listening!
More on http://www.peterdag.com/.
George Dagnino, PhD
Editor, The Peter Dag Portfolio
Since 1977
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