With all the gnashing of teeth regarding the collapse of the USD and the subsequent end of civilisation as we know it should this fall continue I thought I would post a chart of the USD Index. The USD Index measure the performance of the USD versus a basket of currencies.
On this chart I have noted the major falls in price – as you can see the current slip of 15% is less than half the 2002-2005 decline and price is yet to touch the lows generated by the 2006-2008 decline.
If I taken the chart back to 1985 with the Plaza Accord high then you would have seen a drop of around 52%. So it seems that the people who are getting theirs nuts in a crush over the dollars decline seemed to have missed the past drops in the market.
Just goes to show that market commentators have very short term memories and a lack of perspective about the things they talk about.
