Our Dollar is Gaining Against Japan

The United States is finally catching up dollar wise. As the rest of the world's money deflates ours is slowly rising.

The U.S. dollar edged up to 90.02 yen in Tokyo afternoon trade from 89.66 in New York late Wednesday. The euro slipped to 131.10 yen from 131.28, and to 1.4563 dollars from 1.4627. Sentiment among major manufacturers improved for a second straight quarter, but the outlook for earnings and business investment remains bleak, the results of the Bank of Japan's quarterly Tankan survey suggested.

So if our money is worth more; that enables the United States to buy more things. But if we are doing all the buying, we are doing all the spending. If other countries become poorer they will stop buying products. Products like the ones that the United States produces. This inflation shouldn't get us too excited quite yet. We could just end up digging ourselves another hole here.