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Force Majeure Markets~ How long can this Alice in Wonderland Market ignore the numbers?
The numbers are not getting better.
Fifth, the Once Almighty Dollar
The dollar is a proxy for the world’s perception of America.
Under Reagan’s strong defense and economy policies, the dollar volume weighted versus the six highest volume currencies: EUR, JPY, GBP, CHF, AUD, CAD, hit a twenty-five year high of 105.
Under George W Bush bilateral wars, deficit guns and butter budgets and deficit trade, the US Dollar fell to a low of 45. This was a -57% nominal dollar decline in 23 years, and an -86% dollar decline in terms of gold since 2001.
http://www.shadowstats.com/alternate_data/dollar-index-charts
http://stockcharts.com/charts/gallery.html?$usd:$gold
The current Big4 position and Point and Figure Target for the US Dollar suggest the dollar could go as low as 63.
No wonder, with rising debt and unemployment with falling interest rates and real wages.
The American savings rate also began to decline again after jumping up to 5% after the 2008 Crash.
http://www.bea.gov/BRIEFRM/SAVING.HTM
As of 26 February 2010, the National Income and Product Accounts show an American savings rate approaching zero percent:
http://www.bea.gov/national/nipaweb/Nipa-Frb.asp
