...what trade is optimally best? The Yen has already rose a dramatic amount against the dollar, and gold has, as well.
There are more dollars floating around out there than there are leaves on the trees Everything you need to know about macroeconomics you can learn from Douglas Adams
"dollars floating around out there"??? Economics requires us to be a bit mroe specific than that. LEt's start with M0.
There are many USD being printed, but many being destroyed through loan losses and bank/financial recapitalization, also.
Dont forget to add all that money that people actually made during the boom. Some people still have that cash, you just dont hear news stories about it, unless they lost it by reinvesting in R.E. But that money is still out there somewhere and the more the dollar declines, the more those people are going to go out there and start spending it causing more inflation.
It's just a electronic number in some secret room on some secret computer at the Fed. I am truly convinced in my belief that we have reached a stock market top, at least temporary. If we did, or do very soon, then the greenback will have gained at least temporary strength on investors' flight from risk. I would short EUR/USD if I had a forex account.
No, it is not. M3 has hardly grown more than it has in past years. This kind of misinformation results in the "hyperinflation, printing press" hysteria (and causes bubbles). Dump money hard at work...