A couple of things that should be of interest here...

EXTRACTS:

(On the US Dollar)

"The current reading is the highest in the history of this indicator, which dates back to the creation of the euro currency in 1999. That is another way of saying that the “smart money” commercial traders are making a huge bet that this uptrend in the dollar is going to reverse itself. Commercial traders are often early in adopting a lopsided position, but they are nearly always proven to be correct."

http://www.321gold.com/editorials/mcclellan/mcclellan100714.html

(On deflation)

"11. The meltdown in Japanese and European GDP has caused most fiat currencies to sink against the dollar. In the big picture, this is likely to increase inflation in China, and could create a significant increase in gold buying, by inflation-wary citizens."

"12. The US dollar is strengthening on economic weakness in other nations, rather than on economic strength in America. That’s very dangerous. Global demand for oil is collapsing, and the dollar rally is exacerbating the problem."

http://www.321gold.com/editorials/thomson_s/thomson_s_100614.html

Just a few things to think about.

VP