US$$

[Canuck_2]

The US $ is a mixed blessing as it breaks out of the trend and matches values from years ago.

It keeps the price I get in Can$ almost flat while commodities fall but makes our planned vacation more expensive in our $$.

If the US stays high another year we will probably stay at home next year but this year is already booked even as the costs increase.

A chart for you to look at.

http://www.chartoftheday.com/20150128.htm?H

[hardnox]

Yesterday best correction in weeks but I can't call it as over by any stretch.

There's a mild inverse correlation between the buck and commodities. But the larger matter is that there is untold $Ts of debt outstanding in USD denominations, particularly to emerging markets. That cheap money is getting very expensive and I'm guessing the odds of a '94 type global currency/liquidity crisis are high. that would have a much more direct impact on commodity prices.

I'm guessing it won't even matter a great deal if the Fed decides to go wobbly and prevaricate over rate hikes.

[BA Deere]

The Keynesian way is to "pay off debt with cheaper dollars"...oh yah "pay off"....nevermind.   But, it isn`t that the dollar is high as the other currencies that it`s measured against are cheaper yet...smartest kid on the "short bus".   I just don`t see how the fed could be serious about "raising interest rates"  if we had to pay any appreciable interest, the deficit would ballon and whatever green shoots in the economy would be ripped out.   But nothing makes sense as sure as i say that, the fed will have a 8% prime by the end of the year 🙂

[hardnox]

I think the $5M inheritance tax floor is a good number.

But it's a bitch if you happen to be able to vote yourself more than that.

[hardnox]

There is a huge debt problem although much more a private, rather than government, one.

Which Republicans aren't prepared to do anything about whatsoever, but they have a "libertarian" wing that has simple monetary solutions that will never happen but it keeps folks of a particular stripe on board.

Let's see, when did the junk bond explosion occur?