Broken record-Barrons letter to the editor
March 16, 2013
Article Highlights
- The U.S. dollar's purchasing power already is 10% less than it was in 2007.
- The 2007 Dow Jones Industrial Average high stated in 2013 dollars is 15,648.
- In reality, we are still 1,500 points below the Dow Jones Industrial Average peak.
To the Editor:
The March 4 edition was crammed with mentions of how the Dow Jones Industrial Average had, by March 1, "almost reached its all-time high" of 14,198 of October 2007. Here we have rampant "money illusion." Since 2007, the Fed has been busily printing away, and the dollar's purchasing power already is about 10% less than it was then. The March 1, 2013, close of 14,090 is only 12,784, when stated in 2007 dollars. The 2007 high stated in 2013 dollars is 15,648. In reality, we are still about 1,500 points below the previous peak.
Alex J. Pollock
Resident Fellow
American Enterprise Institute
Washington
