Lately, all I see on financial news, is Greece this and Greece that. Due to this story, the Euro has been trashed, and with it, the rally in the US Dollar continues to baffle us all. So, as we have repeatedly mentioned, why is Greece so important? its not. The country's entire GDP is less than 400 billion, meanwhile, California, with a SDP of over 1 trillion dollars, seems to be ignored completely. News stories about California (one of MANY states in the negative btw...since I dont intend to solely pick on California, its just that its massive debt makes it an easy target), are almost never mentioned on Bloomberg, while Greece manages to hold the top two stories on that page on a regular basis. When the California Controller states that :State will run out of cash before April, its almost no where to be found. Yet this is cause for people to flock to the USD for safety? If anything I can guarantee that most countries are in a rush to spend their dollars in this upswing (most notably; China's Dumping Of The Dollar Has Begun)

President Obama comes out and states that we shall cut spending, and the next thing you know we rally in the dollar because what? That we suddenly have a strong dollar policy? Let me say this, it is IMPOSSIBLE to have a strong dollar policy, since if we do, we cant repay our debt! Did anyone even bother reading the details of that freeze? Its minimal, our interest on our national debt alone is close to 600 billion dollars a year. Congress just raised our national debt level to 12.4 Trillion USD, last month, and as of the end of 2010, we shall have more debt than we have circulating currency in the world, which literally means that all the money that the US has (around the world) is actually owed to other countries. Nice.

How in the world are we to believe that we have a positive 5.7% growth in the GDP(U.S. Economy: Growth Jumps 5.7%, Fastest Pace in Six Years) when unemployment is at all time highs, pays have not risen, manufacturing costs have risen, cargo movements have dropped, and yet we grow? Truth is, its hidden inflation. Its the only explanation for this rise. Yet the market tried to rally on the news and as we saw today, failed. The market shall rise and fall, yet it wont be due to fundamentals, it shall be due to liquidity (read inflation).