http://www.kennelson.com/newblog/dollar-valued-dow-7011 Politics, Technology, and other stuff from St. George, UT Wed, 21 Dec 2011 17:11:36 +0000 hourly 1 http://wordpress.org/?v=3.0.4 http://www.kennelson.com/newblog/dollar-valued-dow-7011/comment-page-1#comment-3281 Ken Thu, 15 Oct 2009 23:46:54 +0000 http://www.kennelson.com/newblog/dollar-valued-dow-7011#comment-3281 Some would say there has been deflation. Some would say there has been deflation.

]]> http://www.kennelson.com/newblog/dollar-valued-dow-7011/comment-page-1#comment-3279 Carl Nelson Thu, 15 Oct 2009 22:20:44 +0000 http://www.kennelson.com/newblog/dollar-valued-dow-7011#comment-3279 A little economics can be a dangerous drug. These value shrinkages are in terms of foreign currency (DXY index) and gold, both a reflection of supply and demand in international markets. Internally, the dollar 's purchasing power is little changed from Dow 10000 a year ago since inflation has been so low that there is no COLA for federal pensions next year. Also, a lower dollar encourages exports which is why the Japanese and the Chinese deliberately keep their currency low. So, the devaluation helps SciTools sell more software. A little economics can be a dangerous drug. These value shrinkages are in terms of foreign currency (DXY index) and gold, both a reflection of supply and demand in international markets. Internally, the dollar ‘s purchasing power is little changed from Dow 10000 a year ago since inflation has been so low that there is no COLA for federal pensions next year. Also, a lower dollar encourages exports which is why the Japanese and the Chinese deliberately keep their currency low. So, the devaluation helps SciTools sell more software.

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