Baires - you bring up the possible replay of the original contraction last year. Short term anything can happen, but I tend to view the dollar's fall as the secular move, with the past year a correction in the bear market. If there is another such correction, I believe it will be from lower levels in the dollar.

And anyway, at some point the world will flee to something else than the dollar. The US profligacy was in its relative infancy back in March '08. At that time we had deficits, not DEFICITS like we run now. I knew a guy who married the same woman 3 times (no kidding); however, I think the world is not apt to treat the dollar in its current condition similarly.

Strike