I have a question. Inflation is tame; Greenspan said so. The US dollar is strong or was until Dubya started worrying out loud that it might be too strong. Does anyone have a handle on the extent to which the strong dollar has contributed to containing inflation through its impact on the dollar price of imports? Is the following scenario plausible: in response to low interest rates and low corporate earnings the dollar continues to ease off its recent 15 year high. Just as the U.S. economy "bottoms out", inflation picks up reflecting the higher dollar price of imports. The fed is then faced with the dilemma of tolerating higher inflation (possibly further undermining the dollar) and keeping interest rates down or raising rates and aborting the recovery. Tom Walker Bowen Island, BC 604 947 2213
