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.
Matt Busigin passes on the following chart which further helps torpedo this idea that the dollar is getting crushed merely because the Fed is printing so much.
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.
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