Saturday, May 21, 2005
The rally in the dollar continues
The United States dollar, which The New York Times claimed on April 2 was "heading down, no matter what" on account of Bush administration economic policies, rose a fourth week in a row against the Euro, the only real alternative reserve currency. Indeed, just yesterday the dollar was higher compared to the Euro than at any other time in 2005. At the end of 2004, a Euro was worth more than $1.36, and now it is worth a tad over $1.25, an improvement of approximately 8% against that currency.
I appreciate that I'm something of a broken record on this point. However, I'm going to keep it up until The New York Times admits that it is no more capable of predicting the direction of financial markets than any other soothsayer, and that short-term movements in financial markets bear essentially no relationship to the fiscal policies of any administration. Or until I get bored, which condition is far more likely to be satisfied.
I appreciate that I'm something of a broken record on this point. However, I'm going to keep it up until The New York Times admits that it is no more capable of predicting the direction of financial markets than any other soothsayer, and that short-term movements in financial markets bear essentially no relationship to the fiscal policies of any administration. Or until I get bored, which condition is far more likely to be satisfied.
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