Bad Dog

The Rally Is at a Crossroads

"When the Fed prints money and increases the number dollars in circulation, they are setting the table for an inflationary dinner, which will make every dollar in our pockets worth less."

If the USD rises in value, then there is no over-supply. So long as foreigners keep buying USD as they seem to be, inflation doesn't look like a problem. Of course, should these buyers of USD find a better deal elsewhere, that would be a different matter. In your chart, you seem to be showing an initial reflexive sell-off followed by renewed buying. So there may be problems at some point, events being what they are, but nothing near-term, in my view.