The Power of Ideas

Isolationism May Not Be By Choice

In the last few years, there has been lots of chatter about the US becoming isolationist.  The attached chart is the price movement of the US Dollar against a basket of the major currencies. As you can see, against this basket, our currency has lost over 30 percent of its value in the last 7 years.  At this pace, isolationism will happen by necessity rather than choice, since most of us won’t be able to afford the cost of food and lodging if we venture offshore.  Then again, if you look at the chart of the CRB (shown in an earlier posting), you may feel you can’t afford to live here either.  (USD Index)

(Source Bloomberg)


March 6, 2008 - Posted by | Charts, Markets, Politics


  1. I found your site on technorati and read a few of your other posts. Keep up the good work. I just added your RSS feed to my Google News Reader. Looking forward to reading more from you.

    Jennifer Lancey

    Comment by Jennifer Lancey | March 6, 2008

  2. Is it possible to short the dollar to zero? I’m guessing it’s a good buy there 😉

    Comment by ABS | March 6, 2008

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