Dan...
I don't follow Weldon, but somebody that I read (and you post) does -- can't remember who it was (Russell? Mauldin?).
I agree with his take that the $USD is not really strong, but that instead the Euro, pound, etc. are out deflating us at the moment due to their obvious recessionary problems. Part of that is perception -- the Europeans are far less "creative" in how they report earnings and massage government reports to make things look much better than they really are.
Unfortunately, there is a price to pay for our creativity in that our exports are getting more expensive overseas and next quarter all those companies who made their numbers based solely or largely on the strength of currency based profits will be reporting losses instead. Of course in real life, those losses will be swallowed up in the nether regions of "one time" charge offs, so the bottom line will never be negatively affected. The fact that the currency translations were reported as profits is immaterial - bad things are not allowed to interfere with "positive" earnings reports (or "earnings spin").
Will Gold decouple from the currencies as Weldon suggests?? I have no idea about the timing, but I think that it will definitely happen at some point as all fiat currencies begin to deflate vs "things".
Thanks for the article.
Caught any more 'gators???
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