Economics

An explanation of inflation figures, stocks, and the strength of the dollar.

We are so dialed in with passion and enthusiasm for a certain part of the right and a certain part of the left. That is true of stock prices and that is true of banana prices. And at one point, I believe, getting as high as about $1.60 to Euro, I mean, like a 60% increase in the Euro relative to dollar. And then we went on a 20 year period where the Euro was valued higher than the dollar. But the price level is isolated to what the price of a given transaction would be. And then it was around parity, where they were both basically dollar for dollar with each other for a short while at the beginning of the George W. Buyers and sellers agree to what the price may be, but someone may be selling at a price beneath its long-term value because they're desperate to raise cash, whatever the case may be. And if now we say the price of the orange is 108. But the question is for one particular stock, who or what for example, says today, the stock price for company X is $5.85. All I said was that the price of the orange was 108. I don't think that there was anything that would say, “Okay, wow, this economy is really screeching to a halt.” And there was certainly nothing that says it's rapidly advancing, and everybody is crazy to be thinking about slowdown, it was just sort of right there in the middle, which is a perfect complement to the state of so much data right now, which is ambiguity, the ambiguity of where things are, there's not a compelling case that says things are really slowing down. He’s a dentist in Fletcher, North Carolina and he wants to know the relationship between price inflation figures and goods-and-services sales figures.