I'm not thinking at all it's ridiculous - the dollar, gold,
oil, and stocks are all correlated. Oil screwed up
Bernanke/Bush/HP plan of injecting new debt liquidity into the
banks and stocks. If it drops, stocks will rally. Shows this
is not deflation they are fighting, rather, a banking and
currency crisis. Excess liquidity went into oil pronto. If
they succeed breaking oil, they can direct it into stocks
and succeed in inflating the "useful" financial bubbles
further. Hey, financial bubble (derivatives) is only a
quadrillion, as compared to 1 trillion in commodities. Which
one is bigger? Do we hear anything about it? Is anyone
talking about dangerous speculation in financial assets?
Maybe, breaking some speculators? Increasing some margins?
Nope. Once it pops, it will take down the Fed AND the dollar,
but it keeps growing. They can't hold the dollar. Repeat.
Nope, they CANNOT hold the forex market longer than 3-4 months,
it is huge, the interest rates differentials and the fundamentals are aweful for the dollar, and that's exactly
what the rapidly falling dollar
demonstrated over the past year. Some day this
newly found goldilocks breaks, and the dollar starts a free
fall again. |
