Trouble For The U.S. Dollar

So will the dollar tank and remove some of the selling pressure on stocks? Or will a dollar rally make stocks look even more overvalued and increase the selling pressure?

If history is any guide, I expect the former. For decades the Fed has trashed the dollar in an attempt to paper over declining living standards to keep the U.S. welfare state afloat. Expect more of the same.

For this reason I do not think the air pocket the precious metals yesterday is a reason for concern. Gold in dollar terms is down 4 percent this year, but I expect gold to post a gain this year when the counting is done in three months.

- Source, James Turk via King World News