Dollar's Plunge

"The biggest story in the world economy is the continuing fall of the U.S. dollar, or at least it is everywhere outside of Washington, D.C., the place most responsible for its declining value." -- The Wall Street Journal

News journalists in America hardly know what the truth is anymore, much less report factual news to the people.

The US Dollar has dropped about 37% and the news journalists seem to not care. The dollar's plunge is the biggest financial story on the planet. Here, from the FT, is the S&P 500 plotted after adjusting for the dollar's move relative to a broad index:


And here's the FT's take on it:

According to Corrigan, the chart — which is set to a logarithmic scale — shows the extent to which money illusion has boosted the apparent performance of US equities. As he explains:

Strip out the effect of the sickly greenback (by multiplying by the TWI) and we see that this bust has clearly spelt doom for a three-decade uptrend; that we are both hovering dangerously at the 50% mark of that whole move and also threatening to fail at the previous 2003 low. were that to occur, it could mean a much deeper unwind of the post-Tequila bubble era range.

Notice how Clinton and his policies moved the dollar off the straightline curve into unsustainable territory.