With the problems in Ireland, Greece, and Portugal, the Dollar has been flying upward. One thing I always wondered over the past few years is if other currencies are dropping in value, shouldn't that mean the dollar should be increasing? Aren't currencies priced against each other, they can't all be declining in value right. Anyway, investors are now moving their money into the dollar and Oil is on pace to lose six dollars in value in two days. Unfortunately the Stock Market is also been affected as investors are moving to safety.
If there really is a dollar carry trade, I'd think stocks and commodities would feel a bigger deal of hurt soon.
Taleb (the black swan guy) basically said every human being alive should short the dollar/US treasuries over the long term. Probably a good time to get in the game.
I heard an economist buddy of mine say: "Everyone's been hit but as the USA we're like the Tallest midget in the room!" Though i'm not bullish on the dollar or treasuries by any means, I think that notion that inflation is going to come in so strong is overdone. I think with wage-cost, housing, commodity, credit etc., there are significant deflationary factors in place. Global commodities would probably be a better place than US dollars or any currency.
