Well falling oil prices are supposed to put more money in people's pockets to spend and boost the bottom line for industry, but really it is a worry.
Falling oil increases the bad deflation effect and that is a drag on inflation as is the rise in cost of imported goods thanks to the rise of the dollar. The flow on effect means the FED may have to wait for a rate rise..
So how could the US economy be 'peachy' with such large drags against the economy like cheap oil and a high USD?
And QE, despite what has been said, is not a success. Let's keep an eye on Japan.
But really the US is the pick of a motley bunch of economies, but it has the most modern military around and it is the reserve currency. Where would money head as a safe haven in times that are unstable?
