U.S. Dollar Gains in Strength to Record Levels

LNR wears a smug smile at those in the last eight months who lamented and lambasted the falling value of the U.S. dollar. What other currency did people really think world trade would use ? The Yen ? From a Japan that has been economically flat lined for the past 15 years ? The Euro is not a contender because although the EU's economy is larger than the United States, and for all the unity there is- it's not a single economy ( in addition to the fact that the EU is just a temporary respite to a declining Europe). The largest single economy, by far, remains the United States, therefore, it would be completely illogical to think that anything but the dollar will remain the trading and main reserve currency of world economy. And, here it is, even though the United States was ground zero for the financial meltdown, to which currency did nations flock in time of emergency ?? The U.S. greenback ofcourse. The U.S. dollar has completely recovered, and even gained some against major currencies including the Euro.

It's just constantly amazes LNR how normal economic cycles are treated as long term trends, instead of what they are- just short term fluctuations.