Tuesday, November 13, 2007


A sign of the times: in his new video, Jay-Z flashes his cash, but it's not green:
Consider this little slice of dollar zeitgeist: In his new video, "Blue Magic," as Brooklyn-born rapper Jay-Z speaks of spending his bread, the money that flashes on the screen is a stack of euros, not dollars.

The Federal Reserve's broad dollar index, which measures the buck against a basket of currencies, is near its lowest level in 11 years. The dollar has tumbled 44% against the euro since 2002. Even the lowly Japanese yen, which has tended to be weak against the dollar, is up 7% against it this year.

In other signs of the dollar's perhaps permanent downward inflection, both Gisele and China have signalled their distrust in God the formerly almighty dollar.

(Of course, a weak dollar is not necessarily all bad. It's good for American exports. Of course, it does create the possibility of inflation, as we have to pay much more for anything we import. The weak dollar also reduces the real value of debts. There's more, but there's not enough time right now.)


J. Wilson said...

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creative-type dad said...

I never thought I'd see the day when Canadian money is worth more than ours...

There's something wrong and it needs to be fixed!

MK said...

Actually, there was something wrong for much longer: the US Dollar simply was overvalued for much too long considering US budget and trade deficits. What you see now is a more realistic readjustment, helped in part by the recent arrival of a credible alternate reserve currency: the Euro.

Toddy said...