I’ve refrained from commenting on the fact that the U.S. dollar is trading at a 17-month high for the only reason it’s doing so is because our economy is less effed-up than the rest of the world’s.
See my explanation above.
The strength of the US dollar vs. the Euro comes down to ONE thing:
The US dollar is backed by ONE Treasury, ONE country, ONE political sovereign. The US dollar, the US Treasury, the Federal Reserve, the whole schmeer — belongs to ONE country.
The Euro? Uh, well... um... er... ahhhh....
That’s what people who used to be backing the Euro have realized. When the EU banking system hit the fan, the Europeans suddenly realized that the Euro and ECB are NOT going to work like the US Treasury and the Fed.