Scylla and Charybdis

In case you didn't notice, the U.S. Dollar is dropping like a rock.

Bernanke is between a rock and a hard place. If he holds rates firm, we'll have a severe consumer recession. If he cuts rates, the dollar decline will likely accelerate, with consequences possibly far more dire than a recession.

So, Bernanke, are you a Volcker, who restored faith in the dollar after the Carter years, or a Greenspan, the serial bubble creator. We'll know next week.

Here's a profanity-laced tirade from Karl Denninger. Yes, he has trouble pronouncing "Bernackie," and yes, it's a bit silly to extrapolate a daily FX move into a 50% loss for the year. Denninger may be hysterical, but he's not far off the truth:

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