Well it doesn't get much odder than yesterday..... After being down all day the market spiked up 80 at the last hour because, "China would not be punished for currency manipulation."
Of course everyone knows that China is manipulating...but no matter... the situation between China and the US is now so toxic that any change could cause economic shock.
And amazingly INFLATION IS GOOD FOR THE DOLLAR!
Why? Because it means that the Fed MUST continue raising rates....perhaps Big Time....and that will increase the "spread" between Euroland bonds and US Bonds...thus aiding the dollar.
Of course everyone ignores the Massive deficits and a very expensive/unwinnable War.... and the resulting middle eastern adventures of the Neocons...!
What is meant by the market is that in the VERY short term "inflation is good for the dollar."
Longer term? .....Well, who thinks long term these days....?
THIS MARKET SEEMS CONTENT TO LIVE DAY TO DAY, WITH NO THOUGHT FOR THE ECONOMIC REALITIES, OR THE LONG TERM CONSEQUENCES OF THOSE REALITIES......
TRADE IT IF YOU DARE....
BUT "INVEST IN IT"....? NO WAY!!
