A commenter pointed out that I was wrong in my assertion (I think an erroneous citation) that the dollar fell 25% versus the Euro in the past 5 years. It’s worse. Continuing on that theme, an article in the Financial Times says that yesterday “[t]he dollar fell to $1.4750 against the euro.” When I was backpacking in 1999, shortly after the Euro was introduced, I recall an exchange rate of something like $.8 = €1. This is an astounding 85% depreciation over 8 and a half years. In order to lose this much value, the Fed needs to be expanding the money supply at a rate of 8% annually. But that’s not all — because I’m sure the E.U. has also been inflating its currency, too … Read entire article »