"Abenomics is not having clear traction across the country," warned the head of Japan's auto lobby on Thursday as unexpectedly weak domestic sales revealed - yet again - what an utter disaster government policy is. "We feel a sense of crisis about the fact that cars are actually not selling," he exclaimed, saying that, as Reuters reports April sales tax hike was only partly to blame for the domestic sales weakness, citing the government's failure to boost consumption. But, but, but Japanese stocks are up 1000 points in the last 2 days so how can this be?
With everyone and their pet rabbit convinced the US Dollar strength continues, we thought some longer-term context on the 'strength' of the dollar was useful...
Click image for large legible version
Here is Goldman Sachs' Noah Weisberger take on Lessons From History:
While the real-trade-weighted USD is now at its strongest level since 2009, having already appreciated about 7% since July, the move is still quite modest when put in the historic context of real USD moves in the post-Bretton Woods era, and, in particular, the two periods of significant dollar appreciation from October 1978 to March 1985 and from July [...]