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Down goes the US dollar

Everyone in Canada is talking about the rapid rise of the Loonie (past US$1.10 today!), but the real story is the crashing of the US dollar. Over the past year the Buck has lost over 12% of its value compared to a trade-weighted basket of currencies:

When this change in the dollar value is taken in to account, the S&P 500 has actually lost 3.4% over the past year, and gold has only increased by 16%. Beyond that, the value of all the assets listed on all US balance sheets, both corporate and individual, have been reduced significantly over the last year. If you add in the hit to the foreign holders of US debt, this has probably been the largest destruction of wealth in history. And it's not over yet...

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