The words of wisdom often (mistakenly) attributed to Mark Twain – “History doesn’t repeat itself, but it does rhyme” – come to mind when sizing up the possibilities for another financial crisis sooner-rather-than-later amid all the global hand-wringing about the rapidly rising U.S. dollar, depicted below via this item at Bloomberg.
Note that, despite the recent reversal, the long-term trend is decidedly down, however, the more important point might be that there’s a curve here at all – prior to the end of the Bretton Woods System in the early-1970s, this curve would have been flat for decades.
Of course, that point is routinely overlooked in the financial media as everybody has, over the years, seemed to convince themselves that a world full of freely floating fiat currencies is just the way things work and we have to make the best of it.
Images: via Flickr (licence attribution)
About The Author
As you may have already deduced, this is not your typical financial blog, accompanied by some run-of-the-mill investment newsletter, and I’m not your typical financial writer.
In fact, I spent my entire working career as an engineer before retiring back in 2007 at the tender young age of 46. Two years prior to that in 2005 I started writing a blog – The Mess That Greenspan Made – mostly just to poke fun at the housing bubble and the policy makers who had led us down that path.
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