My Dear Friends,

To answer the many calls and emails I am receiving, please understand that it is my opinion that the dollar market is the most fundamental of all markets.

I will never deny that the dollar can experience contra-trend positive experiences, but I foresee no bull dollar market, nor even firmness for months.

My view is based on the fundamental disaster that the dollar is, especially with the deceleration of foreign demand for the ever increasing size of Treasury auctions.

Supply from the desire for diversification and from the ever-growing size of Treasury auctions is dollar supply that will not be offset by increasing demand, except for the brief moments of Management of Perspective Economics.

When rates rise, which they will, it will be a product of a disdain for dollar instruments and not positive for the US dollar outside of a few days.

This business recovery is MOPE, smoke and mirrors, and is therefore totally brittle, locking the Fed into near zero rates and unlimited QE.

The Fed comments, even though carefully structured, confirmed that today.

Hyperinflation is a currency event, not an economic event. When it occurs it will be super bullish on general equities in the currency of the entity whose mismanagement caused it in the first place.

Respectfully,
Jim