Usually don't have time post much anymore, and Sterling, Bonddad, Jerome (Paris), and others usually cover the economic issues extremely well.
But I just discovered this report which is extremely important.
Now everyone here who reads the above mentioned folks knows and expects that the Dollar will eventually take a huge whack, given our policies. However, this is often placed off into the future a ways.
According to that report, this may not be the case. If the Chinese are shutting down purchases of primary production inputs, that tends to mean they are seriously intending to delink the Yuan. They wouldn't be shutting down whole industries on a whim. And a delink of the Yuan, while good for our position in the long run, will be devestating to the Dollar. We're talking a rapid 30% slide.
Which means higher interest rates, clobbering housing, etc...
Really, there are only three things propping up the dollar. The Yuan peg (forcing China to buy up Dollars), the pricing of oil in Dollars, and the general standard of the Dollar being the primary global reserve currency. One appears to be going soon, which will add pressure for the second to go. If both go, the final one goes implicitly. And that leaves us with a huge monetary overhang, which means inflation, which means higher interest rates.
This will be very interesting (and painful) to watch.