Keep watching the Dollar. We have reported how central banks have been shifting to a basket of currencies, predominately the Yen, Euro and Dollar (YE$), rather than the Dollar alone as the reserve currency, here and here; but now the shift is accelerating. This will force the Fed to protect the Dollar, and raise rates. The dramatic market shifts worldwide reflect this expectation. And they have been dramatic - many markets have crashed, all are seriously down. The Dollar has bounced a bit off its recent low in the Dollar Index, but has not yet made a run up as EWI and a few other ewavers have been expecting, and remains at risk of turning down and falling faster than the Fed (and other central banks) can prevent. Indeed, behind the scenes it appears a lot of pressure is being put on the US to rebalance - borrow less from abroad, increase domestic savings, protect the Dollar.