[Toddsterpatriot]

"The market" is simply saying that a 4.4% to 4.7% rate of return (the current rate on U.S. 10-year to 30-year notes) isn't enough to cover the risk of investing in the U.S.,

Ummmm.....if the market was saying that, the rates of return would be higher than 4.4%.

[durasell]

The market is saying, “Get the hell outta stocks and hedge funds.”

[Alberta's Child]

Ummmm.....if the market was saying that, the rates of return would be higher than 4.4%.

Don't you get it? The weak dollar is based on that 4.4% rate. Foreign investors are willing to accept a 4.4% rate of return, but they are demanding a steep discount on their exchange for U.S. dollars. My 2002 investment in a foreign currency has returned an average annual rate of about 5% in the last five years, but when measured in U.S. dollars my average return is 14.8%.