Is the Dollar Rally the Same as the Great Depression?

QUESTION: Marty: If I have this correctly, you’ve said the Great Depression of the 1930s was a Global Capital Flow problem set in motion largely by sovereign debt issues that led to a massive capital flight into the dollar which created a tidal wave of deflation. Are we seeing this scenario today?

Cheers, TM

ANSWER: Yes. It is the economic crisis outside the USA that is compelling the dollar to move higher. This is what caused deflation and ultimately forced Roosevelt to devalue the dollar. You can see the dramatic spike and rally in the dollar as Europe defaulted on its debts but the US held.

Latest Posts

War & the ECM

QUESTION: You have been the only analyst who has been correct that there would be no recession that just about everyone had forecast for the last two years. A friend [...]
Read more

The Dismantling of the Nuclear Family

Nations like Canada and the United States have deemed terms like “mother” or “father” offensive. Canada began demonizing the nuclear family structure in 2018, when Service Canada urged public employees [...]
Read more

Market Talk – February 28, 2024

ASIA:   The major Asian stock markets had a mixed day today: NIKKEI 225 decreased 31.49 points or -0.08% to 39,208.03 Shanghai decreased 57.63 points or -1.91% to 2,957.85 Hang [...]
Read more