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Matt Dale
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Matt Dale has been running a successful ponzi scheme since he was 12 years old, but has not taken on new clients for the last six years. He received his Ph.D. in Excel graphs from Pyongyang University (online classes). He did his thesis on the merits of using import wizard instead of manually... More
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Mao Money, Mao Problems
  • March '10 to March '11 Money Supply Growth and Forex Moves. 0 comments
    May 20, 2011 2:19 AM | about stocks: FXE, FXF, JYN
    The U.S. Dollar has been taking a beating recently in forex markets (and by "recently" I mean since 2001).  More attention than ever has been focused on the growth of the U.S. money supply, both M2 and the monetary base.
    However, this focus has not extended to other currencies, as much.  The M2 growth of five currencies, the Euro, the Dollar, the Yen, the Renminbi, and the Swiss Franc, is listed below.
    • EUR: 2.7% (8.2 trillion to 8.4 trillion)
    • USD: 4.6% (8.5 trillion to 8.9 trillion)
    • JPY: 1.3% (775.8 trillion to 786.0 trillion)
    • CNY: 16.6% (64.9 trillion to 75.8 trillion)
    • CHF: 7.8% (.627 trillion to .677 trillion)
    Change in USD Exchange Rate:
    • EUR: 4.07%
    • USD: -.--%
    • JPY: 8.94%
    • CNY: 3.89%
    • CHF: 13.10%
    In terms of money supply growth, the U.S. Dollar is in the middle of the pack.  Oddly, the U.S. Dollar has lost ground against all major currencies between March, 2010 and March, 2011.  This is especially surprising against the Renminbi and the Swiss Franc, which expanded at a rate of almost double or quadruple the rate of the U.S. Dollar.  Will the Dollar begin to rise against two currencies that recently have been considered "safe bets"?

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Additional disclosure: My piggy bank is denominated in USD.
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