Zeev, your logic is confusing me...
>people are going to revisit the consequences, low inflation but a ballooning trade imbalance, which will eventually have to get the dollar down.
Dollar cheaper = inflationary
>That is not good for anyone nor our multinationals, and the deflationary pressures will eventually hit our high techs where it hurts, the bottom line.
deflation = dollar stronger
The dollar will remain strong, inflation will remain low, growth will remain robust, but have a few ticks knocked off because of Asia. Corporate profitability will suck, equities will be irrationally exuberant, but the Fed won't raise rates. They can't. Back at Dow 6000, AG had the fate of the US on his shoulders. Now at Dow 9000, it's the world. |
