The Dollar Surge is a Sign of Emerging Market Troubles.

A strong dollar doesn’t worry me, but a dollar that is THIS strong is a sign that something worrisome could be going on. Historically, substantial year over year increases in the dollar have been consistent with a flight to safety. With the recent European and Emerging Market turmoil we’re seeing huge demand for dollars as a good deal of foreign debt is dollar denominated.  The current surge in the dollar is a sign that there’s a flight to safety occurring and more turmoil in the financial markets than many might presume.


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