Yellen stated that she ‘would be pleased’ if the economy was strong enough to raise rates by year-end. That’s all nice and sweet, Ms. Yellen… But did you realize you would move the markets with that ‘wish upon a star’?

Fed Head Hoenig has thrown a cat among the pigeons this morning by stating that ‘inflation pressures may spur a rate rise by the Fed.’ Hmmm, is he serious, or just blabbering some currency intervention.

I’m seeing more and more talk/speculation of the Fed announcing an end to this rate cut cycle after cutting rates 25 BPS. Hmmm… Interesting, don’t you think? I mean, come on, when has the Fed ever been that transparent?

With the dollar weakness overnight, gold has bounced back over $5. Oil has pushed back to within spittin’ distance of $119. Could this be the beginning of the next leg up for the commodities against the dollar?

We’ve seen this type of dollar frenzy before, but calmer heads have always come back to the table to point out the awful fundamentals that the dollar carries around like an albatross around its neck.

German Business Confidence…came out softer than expected in April, falling from 104.8 in March to 102.4. That was quite a tumble in business confidence, and apparently wipes out the previous three months of stronger confidence.

At best, the ECB doesn’t sound like they are ready to CUT rates any time soon… So, the euro gets to hold on to its positive interest rate differential to the dollar…

A whole lot of flation goin’ on…it should be onwards and upwards from here on out. What will happen when we see a real bottom…the new economies start to pull away from the old ones. When the working man was king…and more!

The problem here is that Fed Head Fisher is a Lone Ranger. Big Ben doesn’t share his thoughts, and when the Fed meets later this month and cuts rates, Fisher will probably be the lone wolf on dissenting.

The tragic end of the Great Moderation…deflation works on yesterday’s bubbles…the new Alpha male on Wall Street. The frogs are now richer than Americans…and more!