Yesterday we brought up a note from BTIG’s Mike O’Rourke suggesting that the whole Bernanke-dollar-debasement argument was way overstated considering that the Greenback is still higher against the euro for the year, and since the dollar is still clearly overvalued against the yuan.
Instead it compares the balance of trade (the green line) against the inverse dollar index (the red line). So, basically, when we’re importing more, the dollar weakens. When we import less, the dollar strengthens.
At least on this chart, the connection looks just as robust as any connection to the Fed’s QE.
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.