On November 11, 2009, I quoted Treasury Secretary Geither as saying, "I believe deeply that it's very important for the U.S. and the economic health of the U.S. that we maintain a strong dollar." I went on to say the following: "I would consider that statement to be a bold face "LIE." Geithner and Bernanke have created policies that have destroyed the value of the dollar, driving it lower since March 2009 from 89.6 to 74.8, a decline of almost 16.5%, which on an annualized basis is approximately 25%. Those are the facts!"
Let's look at some additional facts since March 2009. The Australian Dollar has appreciated 51% against the U.S. Dollar, Euro has appreciated 21%, British Pound has appreciated 22%, and the Canadian Dollar has appreciated 25%. I have saved the best for last. The Mexican Peso has appreciated 26% in value against the dollar. If the trend continues for the peso, it will soon be on parity with the U.S. Dollar within eight months. Can you say, Banana Republic! I never thought that I would ever make a comment about the potential for the peso trading at parity to the dollar. Oh, how the mighty has fallen. This time, I am not making reference to Dubai.
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