Sunday, September 19, 2010
Globalism and the Dollar
(click on image to enlarge)
Largely as a result of monetary policy, beginning with the Reagan administration the value of the dollar rose dramatically. The phrase "Morning in America" really should have been "Mourning in America." America lost industry. American workers had to compete with low foreign wages.
In the first 9 months of 2008, the index averaged 97. In the last three months of 2008, the index stood at 108.4. No wonder we exported so much dairy, particularly NFDM in the first nine months of 2008.
For the first eight months of 2010 the index stands at just over 100, exports are up and imports are down. While some programs may wish to claim success for the dairy exports of 2010, the U.S. dollar was probably a bigger factor.