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<p>[QUOTE=&quot;mikem2000, post: 1721096, member: 30574&quot;]Rysherms,</p><p><br /></p><p>Of course strengthening is a relative term.&nbsp; That is how we measure the &quot;strength&quot; of a currency, it is always compared to another currency or basket of currency&#039;s.&nbsp; That is by definition.&nbsp; The accepted index for measuring the strength of the dollar is the DXY where the greenback is compared to a basket of currencies.&nbsp; The dollar is strengthening against this accepted yardstick, there is no argument.&nbsp; </p><p><br /></p><p>When you are talking about purchasing power, that is NOT the strength of the dollar.&nbsp; That is something different, that is inflation and deflation. If you say the dollar is inflating, that would be correct at the tune of about 2% annually right now.&nbsp; Please understand though, that moderate inflation is considered good by all but the most radical economists.&nbsp; It should also be noted, the dollar can be inflating and strengthening at the same time because they are two separate things.</p><p><br /></p><p>Now, about your simple formula.&nbsp; If we were measuring things in a vacuum, I might agree, but we are not and there is nothing simple about it.</p><p>There are many other forces at work.&nbsp; If what you are saying was true, then inflation should have been, much, much higher than 2 %, but it wasn&#039;t and there is no guarantee it will &quot;catch up&quot;.&nbsp; The puzzle has many, many pieces.[/QUOTE]</p><p><br /></p>

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