Wednesday, October 21, 2009
Someone on The Economist board illuminated the strength of the long term USD exchange rate trend.
1969: USD/CHF 4.3 - today 1.02, loss approx.75%
1969: USD/YEN 390 - today 91, loss approx.75%
1969 USD/DMark 3.8 in 1996: 1.5, loss approx. 60% now loss is also 75% if you extrapolate with the Euro gains.
The USD has been going down since free exchange rates. It will probably simply continue to do so. What is amazing is that it is still the reserve currency with such a performance. With another 75% loss against major currencies over the next 40 years some of the current unsustainable currency imbalances should be fixed.