The dollar is halfway to the moon and likely to reach it before the current financial crisis is over. The moon, in this case, is parity with the Euro. The financial environment is in turmoil and the global economy is going down the tubes. We are as close to the conditions of the 1930s Great Depression as we have ever been. The only beneficiary of this disaster is the U.S. dollar. You could say the yen is a beneficiary, too, but from the Japanese viewpoint a strong yen is a bad thing for the economy via lower exports as well as falling equity prices.

The dollar’s rise is recognition that the world’s largest economy and only military superpower still provides the best safe haven in a crisis. Dollar defenders have been saying it for years. Now we have proof.