Gyroscopic Investing

An interesting take on how, among other things, the declining dollar has been artificially inflating corporate profits:

http://www.oftwominds.com/blogaug11/cor ... -8-11.html

To truly grasp the monumental scope of this smoke-and-mirrors game of "profits" rising from currency arbitrage, we have to recall that most of the big U.S. global corporations earn between 50% and 65% of their profits overseas. Since the dollar has weakened about 30% in the Fed's free-money campaign (quantitative easing), then we can guesstimate that fully 15% of all profits from global corporations is phantom: if half their profits are earned overseas, and the dollar declined 30%, then their overseas profits rose by 30%. Since that is half of all profit, then that 30% rise boosts total profits by 15%.

If the dollar starts to rise, those "profits" will contract.