However, one sector of the market that has welcomed the ballooning budget deficit is the commodity sector, as a weaker US dollar translates into higher commodity prices.
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In this case, the direction of causality runs from commodity prices to the dollar rather than the other way around.
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And his supporters are probably profiting from the weak-dollar, commodity-inflation bet whose profitability depends on the persistence of those deficits.
Several resource-sector shares fell, amid uncertainty over Chinese demand growth and after a firm U.S. dollar pressured commodity prices in New York Wednesday.
Bernanke gets credit for not strangling the economic recovery in its cradle, but his sub zero money market rates bear sizable responsibility for the weak dollar, commodity speculation and the inherent inflationary impact all this entails.
The weak dollar means higher commodity prices, and China is the leading importer of raw materials.
That may be because the strong dollar and low commodity prices helped keep inflation remarkably low in 1998.
You can inflate your way out of it, but that makes for a weaker dollar and higher commodity prices.
Other factors have been the strong dollar and falling commodity prices.
Previous rounds of stimulus have weighed on the dollar, helping to strengthened the oil price, because it made the dollar-denominated commodity cheaper for holders of other currencies.
The Morgan Stanley Commodity Related Index (CRX) is an equal-dollar weighted index of 20 stocks involved in commodity related industries such as energy, non-ferrous metals, agriculture, and forest products.
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Rates so low seem to be depressing the dollar and pushing commodity prices upward, and the central bankers might be expected to try to tighten up their monetary policy if there was any serious signs of inflation or if the economy wasn't seen teetering on the verge of recession.
QE3 would pummel the dollar propelling stock and commodity prices up in nominal terms.
As liquidity gradually declines, we expect wider credit spreads, weak commodity prices and a moderately stronger dollar.
The first symptoms would be dollar weakness and rising commodity prices.
"It's clear revenues from resource rent taxes have taken a massive hit from the impact of continued global instability, commodity price volatility and a high dollar, " Mr Swan said.
This policy helps Wall Street make money on commodity speculation and staying short the dollar, while Main Street USA struggles with the higher cost of living resulting from higher energy and food costs.
Falling oil and commodity prices, coupled with a rising dollar, are beginning to manifest themselves.
The sharp rise in commodity prices has been driven partly by dollar weakness.
Despite being a safe-haven asset, the gold market felt selling pressure from a sharply higher U.S. dollar index and generally weaker commodity sector Wednesday.
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However, possible commodity inflation and the rising value of Dollar vis-a-vis Euro may pose profit margin and pricing challenges for Heinz in future year.
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Both the strength of the dollar and the weakness of commodity prices have more to do with economic weakness abroad, particularly in Asia, than with any new era in America.
Worse, with consumer prices sticky in concert with commodity prices that are most sensitive to dollar-price movements, the beneficiaries of the money illusion tend to be the hard, unproductive assets of yesterday (think housing, art, rare stamps, and oil) that are least vulnerable to currency weakness, and which in fact do best when the unit of account is devalued.
That news sent the U.S. dollar index solidly higher and many commodity futures markets, including gold and silver, lower.
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The market place, at least at present, is deeming the Fed statement as stock and commodity market bullish and U.S. dollar bearish.
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The precious metals saw selling pressure due to a firmer U.S. dollar index and as many other commodity futures markets were also under selling pressure.
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But if the recent weakness in the dollar, run-up in commodity prices, and other forward-looking indicators are sustained and passed along into final prices, the Fed's price stability objective might no longer be a compelling policy rationale.
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