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Qiushi: Six Rules behind Adjustments to the U.S. Dollar

Qiushi Journal, a bi-weekly magazine published by the Central Committee of the Chinese Communist Party, recently republished an article discussing the hidden rules behind each major U.S. dollar adjustment made since the Second World War. The author claims that six rules have been discovered: 1) the U.S. dollar became stronger before a global financial crisis and declined afterwards; 2) each time the U.S. dollar appreciated, it brought “a catastrophic blow” to the emerging economies at that time; 3) each time the U.S. dollar depreciated, somewhere in the world an economy would have bubbles, such as Japan in the 1980s; (4) the U.S. dollar obeys “political cycles” which correspond to U.S. presidential elections; (5) the U.S. dollar follows different strategies against “capital surplus” nations (like Europe) and “trade surplus” nations (like China); (6) the U.S. dollar is used to manipulate commodity prices. The author also offered some ideas on how to take advantage of these findings.
Source: Qiushi, August 23, 2012