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Subject Why is the Dollar at a 20 month high?

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Original Message The U.S dollar index (major currencies index) went from 77 in October 2007, to 69 in April/March of 08, now it's back around the 85 mark and climbing.

Due to the obvious hyper inflationthat has occurred by the Fed. printing trillions of dollars in the past few months...how is this plausible?

Yes, there is a weaker supply side...but as we can see from the falling price of oil, there is also a weakening demand side...and people are still spending even more money now just to stay afloat.

It's now obvious that recent commodity price plummet is NOT a fundamental change in the supply/demand relationship.

When you go shopping this weekend and enjoy the lowest prices you haven't seen in a long while, you'd better ask the manager when will the next delivery truck arrive, or will it arrive at all! It's Economics 101 - all businesses are for profit. No one can operate at a loss--that's just not sustainable.

Hoarding fiat currency while new money is created out of thin air preserves liquidity but erodes value. Hoarding physical assets preserves value but reduces your liquidity...

So my question...I believe that the gradual increase of the U.S dollar is caused by everyone hoarding cash...

But with all the cash being printed...WHY IS IT STILL RISING?

Answers?? Links or personal opinion, don't care...jut need a new set of eyes.

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