Replies to post #115982 on ajtj99's Market Pulse

[blacktruck]

I think you need to go deeper AJ...the lower USD is a function of money supply expansion. Since Volcker made Reagan look like he actually knew what he was doing the supply siders have leaned more and more on expansion of the money supply to lead economic growth. Friedman( supply siders go to guy) wanted a constant 5% growth in money supply to allow economies room to expand. I read where all told we are running around 15% expansion throughout the Bush presidency. Coupled with this hyper expansion the Bush/Greenspan deregulatory practices, especially involving the banking deregulations, have created mini monetary expansions in the form of derivatives. One might now argue it is damn near impossible to count all the money that has been created under Bush/Greenspan and now Bernanke.
The problem we face now is assets in the US are now being matched to our worthless currency as assets outside the US, which are measured in US currency, are exploding in value to make up for the currencies weakness of value.
When you boil it all down I think the lesson is when one walks into a polling booth to vote----- the guy's IQ you are voting for really does matter. So even if you would enjoy drinking a beer with him one might want to consider that likability and low intelligence quotients do not necessarily make good leadership qualities.