I'm not an economist and I'm sure there probably aren't many on ET, but can someone shed some light on how the Fed isn't totally screwed here: with the past few numbers coming in notably weak the economy is clearly tipping, slowdown is a given if not an outright recession. But at the same time the dollar is getting crushed. So if the Fed eases trying to add some more liquidity to the markets the dollar's descent will snowball. On the opposite side, we clearly cannot support the dollar through anything but jawboning as a tightening will really send this economy into a nosedive. Real estate bubble is collapsing, is the credit bubble to follow. Seems like we are heading for the worst of all worlds; stagflation. I saw an interesting article on safehaven.com that even suggested a liquidity infusion wouldn't work at this point because capital would just go towards commodities, hard assets, and foreign currencies. Anyone have an idea on how low long foreigners entities will let the USD go before imposing price increases. What hath we sown?