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The global economy is slowing, led by China. Europe isn’t doing very well nor is Japan.
All of the global misery is leading to a strong dollar … and lower US exports.
Here is a chart of US exports versus the USDCNY, USDEUR and USDUJPY crosses. US exports are shrinking in the face of the strong dollar.
If we look at US Export Price By End Use All Commodities YoY, we can see an even more dramatic downturn.
The strong dollar is perceived by companies as having a negative impact on Q3 earnings.
How long will the US dollar remain strong, particularly when the US economy is underwhelming with growing public debt outstanding?
And chronically lower consumer purchasing power of the dollar since The Federal Reserve was created in December 1913?
At what point does the dollar cross the line?
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