Editor of World Currency Options and Money Trader Jack Crooks says the vast majority of consumers see ‘inflation’ as what we’re paying for groceries, gas, a Starbucks coffee and electricity. But when it comes to Europe, wage push inflation plays a crucial role. Rising wages there are keeping prices unnaturally high. This means when the ECB decides to cut rates it will do so substantially and quickly to give it more firepower for the next inflation shootout…

While investors fret about the death of the US dollar, forex expert Jack Crooks says there is one currency in even more trouble than the buck: the British pound.

Britain is following the US into a slump, preventing the Bank of England (BoE) from hiking rates to control inflation.

Jack says Britain is more exposed to the ongoing credit crisis than any other major economy… including the US.

The next BoE move could another rate cut. This would send the British pound tumbling…

The dollar has taken a tumble from its near a three-week high against the euro, after traders got a return of the jitters over crisis in the US credit markets.

No surprise there. What is surprising, says currency expert Jack Crooks, is that the dollar appears to be becoming less correlated with the price of crude oil. The US currency, after all, didn’t hit all-time lows when crude soared to above $150 per barrel.

In fact, the dollar index rallied from its all-time low when crude was around $104 a barrel as oil prices began their steep climb. Jack says there are three possible explanations…

The machinations of the US Federal Reserve are uppermost in the minds of investors — and the media. The Fed is in a jam. On the one side slowing growth and the specter of the credit crisis. Rising inflation on the other.

Ever since Robert Rubin began the tradition in the mid-1990s, it has been a significant element of the Treasury Secretary’s job description to continuously state that a strong dollar is in the national interest.