Has anyone been keeping track of the current world economic status? Does it appear that this is 2008 all over again? The dollar has been risen, commodities' prices falling, the world buying more treasuries bills - can anyone confirm this?
I guess they're not ready to let the dollar die just yet...
The dollar's being going up because investors are dumping the euro: that's as easy as that. Treasuries are going up because, plainly up, investors want safety at the expense of returns.
All in all this time the situation is, if possible, even worse in 2008 because the Fed, the ECD and the IMF have already spent all their ammunitions. Governments in both Europe and the US have resisted all attempts at budget cuts and have chosen the road of increased deficits and taxation instead. China is trying to prevent an internal implosion by "cooling" their economy: they have raised interest rates, cut benefits to exporters and I suspect they'll reel in the housing bubble to avoid a burst they can ill afford.
Rest assured right now the heart of the matter is Europe, that's why the dollar is appreciating. As demonstrated by recent events the PIIGS and the big German exporters are clearly in control of the EU and EMU but good investors know very well it's like putting the ox in control of the cart. No amount of shouting, lying, bullying and cajoling will prevent investors from dumping the euro as long as the present environment exists. The weak willed and easily manipulated German leadership is proving an embarassment to that great nation and is doing immense damage to the rest of Europe by keeping on enabling with hard cash those same behaviors they chastise with words alone, hard cash their stagnating economy is struggling to provide.