The Dollar, Big Story Today……and what about Gold?
Building on our late yesterday comments on the Fed action the Dollar strength today is important for the long term. The US is still the big dog on the block, China moved to soon to come out of the 2007-2009 hole and Europe is still trying to get its act together. Japan and the Yen, which all the pundits have been lauding the past few weeks is the story of an economy that was in so much trouble coming into 2007 that it didn’t room to have the kind of crash that the US and Europe witnessed. Now the Yen is rebounding but will still trail the US.
11:30 AM CDT Gold Comment
CNBC is asking why gold is not rallying as the stock market is dropping. Maybe they should ask the question: How far out on the crazy scale would you have to be to pay a chaos premium for an asset whose real value is deflating?