Yesterday’s emergency 75bp cut means that the Fed simply begins producing more money out of thin air, providing “liquidity” to the banking cartel, and consequently lowering interest rates. But the Eurozone is not as quick to devalue its currency, which means that at least for the forseeable future, the dollar will continue its decline against the Euro.
As long as we’re printing money faster than other countries or currency blocs, we can expect the value of our currency to fall in relation to theirs. As I’ve previously argued:
The simplest way to prevent any further decline (25% vs. the Euro over the past 4-5 years) of the dollar against other currencies is to stop printing more dollars. This method is guaranteed to work, unless other countries begin contracting their respective money supplies.