Zeroing in on the dollar's decline
On Tuesday, Matt Drudge ran a headline about the weakening U.S. dollar on his website, Drudgereport.com. In and of itself, that would be unremarkable, except that it was the 18th time Drudge had posted a link to a story about the weak dollar this month.
And October was only 20 days old.
Clearly, Matt Drudge has developed a fascination with the declining U.S. dollar.
“He’s fixated on it,” said Tom Rosenstiel, director of the Pew Research Center’s Project for Excellence in Journalism. “There’s no question that Drudge can alter what people are paying attention to.”
Market watchers say it’s unlikely that Drudge is actually moving the currency markets with his relentless attention.
“I don’t think that anyone who seriously trades currencies reads The Drudge Report before making important buy or sell decisions,” said Chris Roush, a professor of business journalism at the University of North Carolina at Chapel Hill.
But Drudge does have the ability to put news items on the radar screen of major media outlets and political figures in Washington. And other people are paying attention to Drudge, too: A source close to the U.S. national security community said that Drudge’s link to a story in the [London] Independent earlier this month instantly grabbed the attention of senior American officials.
The story raised the prospect that foreign governments were in talks to replace the U.S. dollar as the default currency for oil trading. Any kind of coordinated attack on the value of the dollar could be seen as a national security threat, and defense and intelligence officials were curious about the source of the anti-dollar rumors that day.
On Tuesday, Drudge spotlighted a one-paragraph item from the Agence France-Presse news service titled “We are ‘worried’ about weak dollar: Eurogroup chief.”
That same day, the dollar hit a new 14-month low against the euro, with the continental currency trading as high as $1.4994 against the dollar. That represented a continuation of the greenback’s steady slide this year: The euro traded at $1.25 against the dollar as recently as March.
Drudge’s interest in the brutal year for the buck is intensifying. According to a search of the website DrudgeReportArchives.com, which is not affiliated with Drudge himself, the Internet pioneer has already posted more stories on the dollar in October than he did the month before, when he posted links to 13 stories about the currency.
That’s leading some to conclude that Drudge’s conservative politics are playing a part in his focus on the issue.
“I think Drudge has been taking a page out of Fox News’ playbook,” said Adam Penenberg, a journalism professor at New York University and author of “Viral Loop: From Facebook to Twitter, How Today’s Smartest Businesses Grow Themselves.”
“Because Republicans have been making hay over their belief that America is becoming weak, its “socialist” economy in shambles, stories on the falling dollar help buttress this worldview,” Penenberg said.
One financial consultant who asked not to be named agreed with that analysis. “The problem is now that fundamentals-driven dollar weakness is being politicized as an anti-Obama weapon, thus Drudge,” said the consultant. “Drudge is simply looking at the charts and then hitting the administration on it.”