Why Bother?
The US Dollar Index is an average of six foreign currencies, weighted in accordance with somebody’s perception of their relative importance in the year 1973, when the world’s major nations first let their currencies start to float “freely” against one another:
- Euro – 57.6%
- Japanese Yen – 13.6%
- British Pound – 11.9%
- Canadian Dollar – 9.1%
- Swedish Krona – 4.2%
- Swiss Franc – 3.6%.
In 1973, the US$ Index started with a base of 100 for the US dollar.
The US$ Index is a measure of global confidence in the value of the world’s reserve currency. The global economic system relies on confidence, since it’s all a confidence trick. When confidence ends and everyone runs for the exits, the Ponzi Scheme collapses.
Sources: INO.com, Losing Cash, 321Gold, The Market Oracle
