The ‘grossly overvalued’ American dollar; about 22 per cent

 

Their currency, our problem

If you spend enough time on certain corners of certain social media sites, chances are that you’ll see someone point out that Mississippi, the poorest US state, is now richer per capita than the UK or Japan.

This is another proof that the dollar is grossly over-valued, inflated in part due to the super-sized fiscal program.

Stephen Jen of Eurizon SLJ’s more specific arguments on why fiscal largesse is at the heart of the phenomenon, 

and why he estimates that the dollar is about 22 per cent overvalued against other G10 currencies — the most since 2002

If this is true, what might trigger a reversal? Who knows.

Robin Wigglesworth FT 16 January 2025

https://www.ft.com/content/b66b4de0-44c8-441d-ac2f-9d94170c5c40

Robin Wigglesworth on my blogg

https://englundmacro.blogspot.com/search?q=Robin+Wigglesworth+

Det är dollarn bakom allt - Monetary Creation and Destruction del 5

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https://englundmacro.blogspot.com/2025/02/rolfs-lanktips-14-februari-2025.html