More on the impact of the falling dollar and when enough is too much by Gongloff of the WSJ. As the US $ reaches for record lows again against a Basket of currencies he holds forth the latest/greatest tools of economic wizardry of prediction that looks to prices in real goods. What does using the iPOD costing or the real effective exchange rate index compiled by the Bank for International Settlements he concludes the eventual obvious with:
"Unfortunately, this is all so much theory. In reality, the dollar is arguably underpriced against some currencies, such as the euro, and overpriced against others, such as China's yuan."
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