I guess I don't fully comprehend that rising commodity prices cause strenghtening currencies, in the countries that supply the commodities. Not directly.
I think the single largest reason for a weak dollar, that has not been resolved, is Al's printing press. It appears to me that the Irag war, the upcoming election, and an economy that can not yet withstand a sucker punch is going to force Al to add more presses, not reduce. Although interim deviations in the dollar can be anticipated, I don't see the chance for a bust up in the dollar all that great. Even if there is one, it is only temporary ... but temporary can be a long time if one is on the wrong side of it.
If we get a rate hike I think it later, as opposed to sooner. PIMCO Pimp (Gross) not so long ago opined, as I recall, that rates may fall further.
All one hears today is the rate increase, the rate increase .... wouldn't it be contrarian correct to at least think a little the opposite? |
