Baptism by fire looks like the operative phrase for describing the first order of business when Ben Bernanke succeeds Alan Greenspan at the Fed at the end of the month.
The central bank’s principal ward, otherwise known as the dollar, is looking increasingly ill as 2006 rolls on. As of Friday’s close, the U.S. Dollar Index shed 3.9% from the recent highs set back in November, with more than half of that loss coming last week. Adding insult to injury, gold is rallying again, pushing again to highs not seen in 25 years.