Friday, July 31, 2015

The Strong U.S. Dollar

     When United States currency, the dollar, is strong via worldwide exchange, historically, negative economic changes occur.

     Economic blocks aren't usually invoked by one situation.  For instance, the strong U.S. dollar resulted in debt defaults in 1980s Latin America. High interest rates and low commodity prices added to their economic suffering.

     In the 1990s, the U.S. dollar appreciation forced Asian countries, Thailand and Malaysia, to abandon the peg.  They adopted the greenback, and a crisis set in.

     When the U.S. dollar is dominant, low commodity prices, and lower exports occur in countries such as Brazil, South Africa, and Russia.  Developing countries lose capital, then credit expansion and economic distress lie on the horizon.

     In China, sticking to the U.S. dollar risks a resulting credit crunch and slower credit growth, too.  Commodity producers predict more problems usually followed by falling demand and lower prices.  One has to then contemplate how far the U.S. dollar could potentially rise.

     "A Federal Reserve gauge of the inflation-adjusted dollar exchange rate against major U.S. trading partners shows the greenback, as of July 2015, has so far gained 17 percent from an all-time low in July 2011. In the previous two dollar-rising cycles, the currency gained 53 percent from 1978 to 1985, and then 34 percent in the seven years through 2002." ( http://www.bloomberg.com/)

     The two terms, weak dollar and strong dollar, are generalizations used in the foreign exchange market to describe the approximate value and strength of the U.S. dollar against other currencies.

     "A strong dollar occurs when the U.S. dollar has risen to a level, against another currency, that have high exchange rates for the other currency relative to the dollar.  The weak dollar is thus the opposite (http://www.investopedia.com)."

     "The value of the U.S. dollar is measured in three ways: exchange rates, Treasury notes and foreign exchange reserves (the amount of dollars held by foreign countries).  The most common is exchange rates, but you should be familiar with all three to understand where the dollar might be headed next (http://useconomy.about.com/)."

     The European Union is stumbling with the Greece debt crisis. This has weakened demand for the euro; the dollar is still getting stronger.

     Currently,  the U.S. dollar is strong.

     Here is the current rate of exchange as of 7/29/2015: (see images)

Wednesday, July 1, 2015

Gluten Sensitivity

     Say no to gluten in your diet.

     Are you part of this popular topic?

     Gluten is a substance that is present in cereal grains, especially in wheat, and is responsible for the elastic texture of dough. Gluten is a mixture of two proteins. It causes illness in people with celiac disease.

     The elastic texture in baked goods is spawned from gluten.

     The two proteins,  glutenin and gliadin, when added to water, bond together to form gluten. Gluten has the ability to trap air.  It can trap air the same way a balloon can. A gluten network will fill up with swollen starch granules and bubbles.

     Gluten allows bread to rise, and cake to gain a soft texture.  Gluten texture, in cake, is made to be soft so that there isn't a lot of resulting bubbles in the dough.  There is a low gluten content in cake flour. Dough with high gluten content is used for making bread. The bread loaves rise higher because of the air bubbles that form as a result of the previous gluten network.

     When those two proteins combine, they cause illness in people that should be on a gluten free diet.

     "Celiac disease is an autoimmune disorder in which the body mistakenly reacts to gluten, a protein found in wheat, barley and rye, as if it were a poison (http://www.glutenfreeliving.com/gluten-free/celiac-disease/what-is-celiac-disease/)".


     -"Symptoms-of celiac disease":

     1.  bloating, gas, diarrhea

     2.  weight loss or gain

     3.  constant fatigue or weakness

     4.  headaches, infertility, depression

     5.  failure to thrive

     6.  short stature

     7.  distended dental

     8.  enamel defects

     9.  unusual behavior changes.


     Gluten, non-celiac, sensitivity-

     Non-celiac gluten sensitivity has been coined to describe those individuals who cannot tolerate gluten and experience symptoms similar to those with celiac disease, but yet who lack the same antibodies and intestinal damage as seen in celiac disease. Early research suggests that non-celiac gluten sensitivity is an innate immune response, as opposed to an adaptive immune response (such as autoimmune) or allergic reaction.

     Research what you eat.

     Maybe you should be gluten-free.