U.S. Dollar a Devaluation Tool?

Posted by David Rosenberg

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This is the quote from Ben Bernanke at his famous “What If” speech he delivered over how a central bank can fight deflation … using exchange rate policy as a tool.  This is why the current countertrend rally in the greenback and the giveback in commodity and gold prices are noise around the trendline.  There is nothing wrong with using corrections in the resource complex to add to long-term positions at a better price because this is a secular bull market.  The dynamic growth in Asia is not merely some flashy cyclical deal — it is more permanent than that.  But the reflation initiatives the U.S. is going to have to take to make the full transition to the next sustainable economic expansion are going to very likely involve the competitive boost from a weaker currency … and Helicopter Ben outlined the strategy seven years ago:   Summary HEREFull Article HERE.