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<p>[QUOTE=&quot;Bluesboy65, post: 1159935, member: 23329&quot;]That&#039;s an interesting anecdote and in line with what I have been reading.&nbsp; Inflation of the dollar can be approximately measured by it&#039;s relative value (dollar index) but it&#039;s impact on supply and demand in our global economy creates a secondary impact on commodity prices.&nbsp; In the case of the US, the dollar has dropped roughly 5% in the first 4 months of this year.&nbsp; Since many major economies are holding US debt and virtually all economies are holding a reserve of dollars to back their trade, the 5% loss is painful and impacts everyone.&nbsp; To protect their value, other countries would rather hold a commodity like cotton, land, copper, silver etc. and begin trading dollars for cotton (just picked one).&nbsp; But since there are far more units of dollars than there are units of cotton, cotton gets bid up much higher than the dollar falls.&nbsp; </p><p><br /></p><p>It was good to see the dollar inch it&#039;s way back up above 75 in the past few days.&nbsp; Perhaps it was in anticipation of more serious talks about controling deficit spending and addressing our debt issues in the face of the potential S&amp;P downgrade.</p><p><br /></p><p>Bluesboy65[/QUOTE]</p><p><br /></p>

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