(snip)Friday, April 8, 2011
US Dollar Getting Destroyed - 75.09 printed (UUP)
Scribed by Sellputs at 4/08/2011 03:31:00 PM 0 Comments SO here we are.. Bernanke has offically screwed the dollar.. PPT on the GOLD offers and INDEX bids.. WE go below 75 its gonna get wild in GOLD.. MOrgan stanely cannot hold down the bids for long... 74.96 is tthe 2 year low in the dollar.. (snip)
from
The US Dollar Index shown on the above chart is based on the 'purchasing power' of the US dollar in global markets ... or more specifically reflects the international exchange rate value of the US dollar versus six major foreign currencies.
While the author emphasizes the investor standpoint impact of a weak US dollar on rising prices of gold and US stock indexes, from a consumer standpoint the effect is the opposite. Or put another way, it now requires 88 US dollars to purchase the same amount of foreign / imported goods that 75 US dollars would have purchased a year ago. And as an unneeded reminder, oil is imported at the 'margin', food is imported at the 'margin' etc. thus price levels for US produced oil and food will actually be set by the US dollar denominated price of imported equivalents.



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