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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: GST who wrote (78510)	2/5/2007 4:54:14 PM
From: SouthFloridaGuy	Read Replies (1) \| Respond to of 110194

GST. Possibly...And we've had this back and forth before...But usually currencies significantly depreciate (meaning that which would be inflationary) once the Central Bank has decided to favor greater employment over price stability. And even then, it's all relative, if other Central Banks are pursuing even more lax policy, then the home currency could even appreciate (but gold would/should appreciate as it has). At this point, there is no evidence whatsoever that our CB is soft on inflation or promoting growth over price stability. If anything, some may argue (like Bill Gross), that they are being too tough given the housing market issues, auto woes, etc. Perhaps people miss Greenspan's late 90's antics...but I for one think Bernanke gets a B+/A- for his correct calls thus far...and I'm a tough grader. Also, I don't think businesses are pushing for a lower dollar. Corporate profits as a % of GDP are sky high. The pain is on the consumer side and that's wholly due to microeconomic concerns. I for one hold no foreign currency other than in an indirect way, Euros and Real through holdings in EFA and EWZ.