The dollar is now in our target zone of the high 70's. If we are to get a desperately needed (by policy makers) 2nd deflationary dunk, it should come before the dollar loses the noted monthly support. It would be a profound thing if this were lost here and now. It would be the gateway to Bananaville USA and who knows what with regard to China's reactions, given its huge foreign reserves.So the question remains, is this the big hyper-inflationary blow off, or is that pushed into the future? This line in the sand drawn on USD will help indicate.
