There is certainly no doubt that 2014 was ‘the Year of the Dollar,’ as King Buck staged a rally, based on a comparison to some historically important currencies as embodied in the DX index.
I have shown this is the latest update of the US Dollar Very Long Term Chart here.
In fact, the greenback has hit levels not seen since the last financial crisis. You know, the one in 2008 that everyone has already forgotten, and which seems just as likely to reoccur as if we had done little or nothing about what had caused it in the first place.
I was amused to see a chart posted over at Zerohedge that shows that the next best performing currency in the world after the dollar was gold of all things. That chart is shown below. This presumes that one would count gold as a proper ‘currency.’
I would say not quite, since technically no sovereign will admit to it at this point. There is a patina of official sanction about a proper money. The central banks all hold it, and some are buying it quite vigorously especially since 2006. So it does have the character of a natural currency and enduring store of value, despite the blatherings and propaganda campaigns of its official detractors.
Perhaps propaganda is too strong a word for our polite society, all whitewash on the outside, with the bones of the brutally savaged carefully hidden within.. ‘Manufacturing consent’ and ‘molding perceptions’ is what we call the persuasion campaigns in our genteel era. Propaganda is an ugly word, so let’s put some icing on it and call it something else.
This post was published at Jesses Crossroads Cafe on 31 DECEMBER 2014.
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