The recent "surge" in the dollar could be caused by the increased demand for hard currency caused by the middle east conflicts.
If so, that might be merely a temporary blip...
Yet the FED shills have taken the opportunity to bash evil gold, (the economic Osama) considerably...despite the fact that nothing has really changed about the dollars macroeconomics.
Bernanke simply must keep raising rates indefinitely... And the minute he stops raising rates the dollar will plunge and gold will soar. Curiously, the dollar has been tightly linked to gold in recent trading...
NOT OIL!
So the gold bashing has taken on increased importance in the FEDS effort to "save the dollar."
But at the end of the day...if oil stays high...the inflation threat will still hang over the dollar...NO MATTER HOW BADDLY GOLD IS BASHED BY THE CENTRAL BANKS.
This recent fixation with gold...could cause the FED to take it's eye off the real ball.
THE PRICE OF OIL...
