The U.S. Dollar's Two-Step: A Long-Term View
by Michael W. Hodges, Author. Grandfather Economic Report. September 24, 2007
Devaluation of the Dollar - Internally and Internationally
Should we expect differently than the past?
1. U.S. Dollar devaluation of internal purchasing power:
Read more on the long-term CPI inflation chart here in the
Inflation Report.
Why should anyone think this historic internal dollar depreciation trend we call inflation will be otherwise in the future?
2. U.S. Dollar devaluation of international purchasing power:
Read more on the long-term US dollar exchange rate chart here in the Foreign Exchange Report
Why should anyone think this historic international dollar depreciation trend vs. foreign markets will be otherwise in the future?
We can always hope our dollar-based savings and assets will be under pinned by a stronger dollar, both domestically and internationally, in the future than in the past. But history, with such long-term negative trends in place, is a powerful teacher - - requiring uncommon "bravery" to bet against, wanting to believe that this time it will be different.
I can contemplate several likely outcomes, one of which is most scary.
© 2007 Michael W. Hodges
Web note: The above editorial is a recent summary of an updated chapter from Michael Hodges series, Grandfather Economic Report. Read the full article: Federal Government Spending Report on G.E.R. State & Local Government Spending is covered in a separate chapter. The Grandfather Economic Report is a series of reports examining economic conditions facing families and youth, compared to prior generations.
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Michael W. Hodges | Grandfather Economic Report | Email
