According to the exchange rates and charts on xe.com, the only currency that has been strengthening versus the U. S. Dollar lately is the Russian Ruble. The price of gold (Comex August 22 Gold Futures, ticker symbol "GC=F") in U. S. Dollars is down this morning by $45 (it goes up and down but that is quite a swing in just a few hours).
Yet the government of the United States has been spending like 350 million drunken sailors. And the national debt? Fuhgeddaboudit! So the Dollar should be, like, about worthless, right? At least that's what Libertarian acquaintances say. And the price of gold should be, like, about sky high, right? At least that's what Libertarian acquaintances say. What's up with that? Don't expect an explanation from me. I don't understand it.
Oh, and while we're at it, isn't deflation supposed to be one of the definitional signs of an economic recession? While the price of everything else is rising at beyond escape velocity, maybe the deflation is starting -- with the equities markets?
"Neither seek what is too difficult for you, nor investigate what is beyond your power." -- Sirach 3:21
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