Tag Archives: US Dollar

The Dollar & Commodities – Just Friends

Guest Post by Michael Ashton

The recent, aggressive ECB ease, combined with some mild Fed growls about increasing rates “at some point,” ought to be good news for the dollar against the Euro. And so it has been, although as you see in this weekly chart (source: Bloomberg) the weakening of the Euro has been (a) mild and (b) started more than a month before the ECB actually took action. (Note that the units here are dollars per Euro).

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Government’s Disatrous Reign Over US Money

Guest Post by EWI

Very few people know that the United States did not create a monetary unit pegged to “buy” some amount of metal, as if the dollar were some kind of money independent of metal.

In 1792, Congress passed the U.S. Coinage Act, which defined a dollar as a coin containing 371.25 grains of silver and 44.75 grains of alloy. Congress did not say a dollar was worth that amount of metal; it was that amount of metal. A dollar, then, was a unit of weight, like a gram, ounce or pound. Since the alloy portion of the coin was nearly worthless, a dollar was essentially defined as 371.25 grains — equal to 24.057 grams, or 0.7734 Troy oz. — of pure silver. (15.43 grains = 1 gram, and 480 grains = 1 Troy ounce.)

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Catching Up w/ the ‘All One Market’ Market

It appears that two anti-USD market participants have dropped out of the running since we last checked in.  So now it is shaping up like SPY, Euro and commodities against Uncle Buck.  Emerging Markets could be thrown in there too.  Gold and silver?  Palookaville.  This can’t make the ‘Dollar Collapse’ cult very happy.

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Euro & Uncle Buck Switch Positions

One is dropping below its MA 50′s and the other is popping above, after the ECB sat on its hands with rates but made a lot of Jawboning about ‘unconventional’ stimulus in the battle against the dreaded deflation.

It is unbelievable the degree to which people still have confidence in these clowns (including the ones packed into the little clown car here in the US), but apparently they do.

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