If prices temporarily fell within the US, how would the dollar fare in foreign exchange markets (FOREX)?
Everything in the world has a trend and it’s well known that nothing will simply trend in one direction forever. So even though the dollar is technically shot to pieces and fundamentally rotten, it will have a strong counter trend rally at some point. When the dollar begins to rise these signs will start to manifest themselves. • Goods will start to drop in price. This has already started to take place and will keep accelerating for a while. Electronic goods, now even many agricultural products are dropping in price and what is even more interesting is that gas prices are no longer rising even though oil keeps setting new highs almost on a daily basis. • The currencies that rallied while the dollar plunged will be in the process of topping or putting in their final highs. • Consumers will start to cut down on their spending; the latest consumer spending figures seem to indicate that the consumer is slowly tightening his or her belt. The Feds won’t sit still. They believe that the US ca