King Dollar

Remember all the laments about the weak dollar? The demands for tighter policies to strengthen King Dollar?

On a trade-weighted basis, the dollar has been strengthening all fall. As of this week, the dollar has returned to its 1997 value.

Happy now? I didn't think so. After steady increases since last year, US export growth stalled in October. Here's the chart to the end of September, showing rising exports and non-rising imports:

Now here's the first report of weakening export prices in October 2011.

King Dollar = less exports = less jobs.