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<p>[QUOTE="Blaubart, post: 2005783, member: 37498"]Why should it? Some inflation is a good thing. It keeps the economy going.</p><p><br /></p><p>To judge the strength of the dollar, first look at our inflation. Is it greater than 5 or 10 percent? No? Then compare it to other currencies to see how our currency is doing compared to theirs.</p><p><br /></p><p>The Dollar Index is helpful of course, but it is limited in scope since it only compares the dollar to a handful of other currencies, and China is not one of them.</p><p><br /></p><p>Ten years ago, the dollar would buy .78 Euro. Today, it buys .79. Not much change really.</p><p><br /></p><p>The Yuan? Ten years ago it was fixed at 8.2765. Today it buys 6.013. Big change, but what was responsible for that change? A fall in the value of the dollar against most other currencies including the Yuan? Or a rise in the value of the Yuan against most other currencies including the dollar?</p><p><br /></p><p>Great Britain Pound? Ten years ago: .544. Today: .622.</p><p><br /></p><p>Canadian Dollar? Ten years ago: 1.22. Today: 1.12.</p><p><br /></p><p>Mexican Peso? Ten years ago: 11.53. Today: 13.48.[/QUOTE]</p><p><br /></p>
[QUOTE="Blaubart, post: 2005783, member: 37498"]Why should it? Some inflation is a good thing. It keeps the economy going. To judge the strength of the dollar, first look at our inflation. Is it greater than 5 or 10 percent? No? Then compare it to other currencies to see how our currency is doing compared to theirs. The Dollar Index is helpful of course, but it is limited in scope since it only compares the dollar to a handful of other currencies, and China is not one of them. Ten years ago, the dollar would buy .78 Euro. Today, it buys .79. Not much change really. The Yuan? Ten years ago it was fixed at 8.2765. Today it buys 6.013. Big change, but what was responsible for that change? A fall in the value of the dollar against most other currencies including the Yuan? Or a rise in the value of the Yuan against most other currencies including the dollar? Great Britain Pound? Ten years ago: .544. Today: .622. Canadian Dollar? Ten years ago: 1.22. Today: 1.12. Mexican Peso? Ten years ago: 11.53. Today: 13.48.[/QUOTE]
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