At this point I do not think converting to euros will help – dollar is 1.59 to the euro – almost the lowest ever. Plus, I think the new phrase “too big to fair” works with the dollar and the US economy.

The world cannot afford for the US dollar or economy to fail. The FED has created another bubble in commodities deliberately to take some of the pressure off of the real estate calapse. Two percent interest rates in a 6 percent inflation environment is deliberate. The FED probably wanted a stock market bubble, but un-intended consequences made it a commodities bubble.

The FED is counting on the ECB to keep inflation in reasonable limits with 4.5 percent interest rates while allowing the US to try and bubble its way out of a depression. The ECB is allowing this because the world cannot afford for the US to fail. Inspite of globalization, the US is too much of the worlds economic engine and a US failure would spin the world into decades of economic disaster. But knowing this helps me not, because I still have no place to put my money.

The stock market is headed down, inverse funds like SDS and SKF are very volitile, the FXE and FXF the currency exchange funds are up and down like an elevator.