"Because the Dollar Index (DX) is an outmoded and artificial measure of dollar strength, containing nothing to account for the Chinese renminbi for example, it may not be a true reflection of the progress of this inflation."
The Fed Is Monetizing Debt and Inflating the Money Supply
A number of people have remarked about the strong dollar and strong upmove in gold today. It does seem counterintuitive.
The euro is weak because of the solvency situtations in Ireland and Spain. This is taking the euro down and the dollar higher.
At the same time there is a flight to safety occurring into gold, but not into commodities in general.
It is not a flight from inflation, it is a flight from risk to relative safety. At least for today.
But by the way, keep an eye on the Treasuries, particularly the longer end of the curve, as we have previously advised.
There is 'the tell.'
