We all know that America is not a single player in the economic scene. The vigorous fiscal and monetary responses of the United States and its friends to the worldwide financial crisis that erupted in 2007 indeed have supported near term economic recovery and excited some optimism. Look at the jump in key stock marketplace playgrounds and many commodity sectors!

Nevertheless, America increasingly looks married to fiscal deficits. The Federal Reserve Board not only promises, at least for now, the ongoing joys of low nominal government interest rates. It has espoused a new foray into quantitative easing. The ongoing threesome of large and growing fiscal deficits, lax Federal Reserve policy, and a feeble US dollar should worry marketplace voyeurs. US interest rates in general are in the process of mounting higher. The US dollar probably will decisively penetrate its all time lows. Rising yields alongside a falling dollar increasingly will undermine and eventually reverse a fair amount of the worldwide equity rally that began in spring 2009.