I don't think any rational person can disagree that the recent dollar strength is in large part due to the total disaster in the EU with Greece, Italy, Spain, and Portugal coming unglued. It certainly isn't because the dollar is intrinsically attractive.

Dollar strength has in turn kept the dollar gold price down. The fundamentals for the dollar are just terrible with unlimited government spending and massive debt growth into the distant future.

That bodes well for the long term gold price, and indicates higher taxes and a lower standard of living in the United States and Europe. And of course, it's likely that we will ultimately have a high inflation rate similar to the 80s before Volker took charge. I doubt that we have the will to accept the kind of pain today that will be needed to fix the problems.

Anyway, Happy Easter to all.