Bloomberg/Yueqi Yang/1-17-2021
“Janet Yellen is expected to affirm the U.S.’s commitment to market-determined dollar value and give assurances that the U.S. won’t seek a weaker dollar for competitive trade advantage, the Wall Street Journal reported, citing Biden transition officials familiar with her preparation for her confirmation hearing.”
USAGOLD note: A watered-down version of Rubin’s strong dollar policy that suits the times and perhaps the reality in which we find ourselves ……That said, the strong dollar policy was never much of a policy but more an attempt to jawbone the market from selling off the greenback. Since Rubin, uttered that famous refrain in 1995, the dollar has declined in purchasing power 41% and the price of gold has gone from $375 to $1840 and a recent visit over the $2000 mark.
Gold and the Purchasing Power of the Dollar (1995 to present) Sources: St. Louis Federal Reserve, BLS, ICE Benchmark Administration
