Why the Dollar is Getting Stronger
When people first take an interest in finance (beyond balancing a checking account and buying a few stocks here or there) the first big revelation they have is that paper money is, in and of itself, worthless. Really it's just a piece of paper, not even blank so you can write on it, not even big enough to wrap a fish in.
This quickly leads to the fact that "the governent" (not really but that's the thought) can print up money on a whim, at any given time. This leads to gold fever and the urge to exchange as many pieces of paper for yellow metal as possible. You turn into a hyperinflationista.
I went through this phase, I remember it well.
If you stop your education there, as many people do, the fact that the dollar has been on a tear increasing in value since last fall is perplexing, to put it mildly. The government is spending money like it's going out of style, how's this possible, etc.
I've seen goldbugs go through all types of contortions to try to explain how this is possible while clinging to their um, novel--ah hell, who am I kidding, flat out WRONG--view of the world.
Here's what's really happening:

