RE:RE:RE:Seriously ......marketsense wrote: Yes, the strong US$ does have an effect on commodity pricing. however there are
a couple of headwinds appearing which eventually will force force the Feds hand.
1. The US will eventually fall into a deep recession characterized by a number
of serious issues. High unemployment, negative balance of payments, high
levels of bankruptcies, a liquidity credit crisis, and home foreclosures.
2. The US is not an island unto itself. It has to trade with other nations and therefore
needs to be more in step with FX differentials with the rest of the world. That plus
they still need the world to help finance their debt. eg, remember when China
threatened to dump their billions of US$ treasuries on the market if Trump persisted
in raising tariffs against them in the nasty trade war which he inititated.
Thats a lot of potential headwinds for the US if the Fed thinks they can just keep
cranking up rates without suffering any dire consequences. There is a limit and
already other countries are expressing their concerns over this single minded
approach by the Fed irrespective of how it effects the rest of the world.
so much talk about recessions. What high unemployment are you talking about? Unemployment rates in North America are very low.