Heardan economist a few days ago who made some sense.
I forgot who it was, but he said the dollar will climb in value when the Euro starts tanking, because people who are invested in Euros will be looking for a safe haven and the dollar, with all its faults, is still the best bet in the short term.
He said that precious metals will drop in value at that time, but went on to say that the fundamentals for the dollar aren't sound enough to sustain it for long.
When the dollar starts going down after its rally, the stock market will rapidly fall and precious metals will spike.
He said that that was when the "decoupling" will occur between gold and stocks.
Makes sense to me.
It all makes sense until it doesn't. We are entering new territory with a true global market and interdependent economies. The result is that the standard of living is equalizing between major countries.
I see that some companies are bringing jobs back to the Unites States because labor and other costs in China and India have risen to the point that the U.S. is once again competitive. If the trend continues and if Congress gets the spending under control we could still grow our way out of our debt.
