Not sure about that Adwebster...It may be that the foreign debt...

Not sure about that Adwebster...

It may be that the foreign debt holders are the ones forced to support the dollar or a bit of both.

In my view the current dollar strength is technical and that it is coinciding in equity weakness is no coincidence since the rally so far as been driven by the loose monetary policy.

However, given this - I'm not sure I even really understand NTIVF's claim that the gold rally has been technical not inflation. In the current market the two seem to me to be almost equivalent. Loose money pours into equities and overflows into gold on an apparent reflation trade. As such, when one technically sputters or spurts so must the other. I mean - this is equity inflation yeah? It's not driven by the fundamentals of the stocks themselves - because most are trading on multiples not worth their profits. So - that's just inflation.

Since the fed has lost its distribution mechanism to the rest of the economy, it can at least inflate stocks no problems. The hope, presumably, is that super annuation of most people no longer look so sick and so consumers will become more confident about spending again - particularly baby boomers...