In short, it is an exercise of banality to compare the dollar to other currencies to determine whether or not the dollar is getting stronger or weaker. Suppose the dollar drops against, say, the euro. You could pluck out a different currency, e.g., the Zimbabwe dollar, to try to show that the U.S. dollar somehow became stronger. It is like comparing yourself to other boats in the water to determine how far out at sea you are, while totally ignoring the shore.
If you want to know what direction central planners are taking the dollar in, then you should be reading this. I can tell you with certainty that the Federal Reserve is running a very loose-monetary policy, which is never a good thing. What the precise effect it will have on the direction of nominal prices is hard to say, since savings are so scarce that the collateral for the loan market to make loans doesn't exist. But we can know in absolute terms that prices will be higher than they should be.
Another good piece of data to use to measure inflation is this.
Other useful indicators of the direction that our fiscal overlords are going to steer the monetary overlords in are:
The market is trying to cut back and save again, in response to real economic conditions. Unfortunately, the loose-monetary policy will only beget more problems by keeping malinvestment intact, preventing the market from reaching an equilibrium. While nominal prices may go down right now, the loose-monetary policy of today is setting the stage for hyperinflation after the market does finally bottom out.
Mark served honorably for four years on active duty in the Marine Corps infantry, and was a Libertarian endorsed candidate for a municipal office in 2002. He re-enlisted in the ARNG in 2006 because he was depressed/at times SI without the military. He has held the NFA Series 3 license (futures and futures options broker) which he did a voluntary withdrawal on because he couldn't in good conscience sell managed futures since firms would do better to hire an in-house trader to trade a proprietary account with a discount broker, which he outlined in his well-written withdrawal request. Since the year 2000, he has spent much of his free time reading the great minds of the Austrian School of economics, such as Murray Rothbard, Henry Hazlitt, Ludwig von Mises, et al.
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