Sometimes a picture is worth a thousand words. The chart below tracks the decline in the US dollar from 2000 to 2009. The blue lines is the 50-week moving average and the red line is the 200-week moving average; both averages are on a downtrend. The dollar is rapidly losing value against gold, commodities, and foreign currencies, largely due to the Federal Reserve’s easy money policies: policies that were in fact largely responsible for the housing bubble and economic collapse of 2007 – 2008. According to yahoo finance, “Dollar Decline in Perspective”:

Since March 9th, the day the market hit bottom — and the dollar hit its high for the year — it is down 14.4% against the major currencies and down 11.5% against the broad basket of currencies.

US Dollar Index 2000 – 2009

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Tags: Dollar decline, Inflation

This entry was posted by Mark Amagi on Wednesday, November 18th, 2009 at 2:32 PM and is filed under General. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.