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<p>[QUOTE=&quot;InfleXion, post: 1720895, member: 29012&quot;]The dollar is not strengthening. Gas is still $4/gallon. Food prices are still up. Services are not getting any cheaper. Metals are down because of coordinated paper selloffs. The dollar index is only going higher because the Euro and especially the Yen are weaker currencies. To say the USD is strengthening when $85 bn per month is being created is silly. </p><p><br /></p><p>&nbsp;The Fed can only unwind if they destroy dollars that they have already gifted to the big 5 derivatives banks. These banks require that money to stay solvent. It is not possible to unwind the position without crashing the system. Do you really think they&#039;re going to jack up interest rates to 15% or 20% like Volcker did and force all the debtors out there to pay through the nose? It&#039;s not realistic. They can&#039;t unwind without free market competition, regardless of whether they would like to. Unfortunately the methods they use to keep these banks above water have killed free market competition so there is no option other than to prop up the derivatives holders.[/QUOTE]</p><p><br /></p>

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