Loading ...You just can’t make up these kinds of headlines. It’s hard to follow the stock market reasoning of a good GDP for the US economy means that the dollar becomes weaker. Yet, this has played out again and again. The dollars inverse relationship to equities will always to the cause and affect result. Unlike many however, I can see the mathematical sustainability of the current system (or lack of). The problem is that as foreign markets gain strength and their economies increase, their currency will also increase in value versus the dollar. This will lead to runaway inflation abroad that often results in increasing rates. You can see some countries are already increasing rates to curb inflation at home. Unfortunately, this is the wrong move. What they really need to be doing is imposing a tax on foreign investors to prevent hyper inflation and an over invested environment.
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