China is taking measures to strengthen their currency to fight off inflation. What are we doing with interest rates at 0% for so long? If setting the rates at 1% created the 2008 crisis what is setting them at 0% going to set up.
We are doomed. Irrational speculation is supporting the dollar right now. Look for the index to break below 70 by summer if not sooner.
Brad, sooner or later you are gonna be right and the dollar will need to be shorted, but now that China is slowing, commodities will fall and the carry trade will unwind making people that shorted the dollar have to cover. This rise may very well match the yuans rise and not require china to revalue the yuan. The Inflation in china is bad for us, but may further slow them to not want to raise the price of their goods and we may see a small net change in product pricing here plus the drop in commodities is also deflationary. We may not needto raise rates to get a stronger dollar. Besides Europe is hosed, Germany may be fine, but the rest are hosed. India overheated and now is coming down and Japan is dead while canada and Australia are gonna hurt from lower commodities.
You are going to be right sooner or later, but I think it is later, like maybe April.