Reply #61: reacting to a journalist's description of a large group of people [View All]

[ArfDogMNO]

in one line is probably a good way to react incorrectly.

Those same traders and businessmen understand that a falling dollar raises dollar prices on many commodities. They also understand that they are becoming less 'rich' in real terms due to dollar devaluation. The Fed is jacking M3 through the roof, printing money left and right, and rising prices in dollar terms is the natural consequence of that, along with the related central bank dollar sales worldwide due to declining confidence in the US as a country able to manage its books and protect its currency.

They can hedge, you say? Do you have any idea how expensive a dollar hedge (in gold, euro, or a currency basket) is?