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The US$ is a very popular currency around the world but it is not the only currency. The recent strength in the US$ versus other currencies was due to the Currency Contagion, as they called it, that hit the Tiger Countries, Russia and Brazil. Also as Europe was going through a mild recession and the Euro was being created the US was the only Safe Haven.

The Storm is pretty much over and the seamen are starting to look at the dilapidated condition of the Harbor that looked so wonderful only a short time before.

The link below is a little story on the Trade Deficit:

As the US economy slows - Higher Interest Rates, Higher Oil Prices, Higher Employment Costs, Higher Raw Material Costs, Higher just about everything, we will see the impact on the Dow as that and the US$ will be on the decline.

People say that Inflation is in Check, Bovine Droppings! The Stock Market is Highly Inflated; just look at the PE's of some of the new darlings of Wall Street. This is almost equivalent to a rise in the price of Oil from $3 to $50 a barrel - not in one fell swoop as we should all recall.

The precious Yellow is priced in US$s. As the US$ declines it will take more US$s to purchase that same amount of metal or paper then it did before. The world is flooded with American Presidents and US Revolutionary Heroes, Ben Franklin. When people decide they don't want any more Greenbacks and shift their preferences to the Euro, Pound or Yen then we will see a real stampede on Wall Street but to the down side.
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