What we are watching in the financial markets is a war between inflation and deflation. One side gets beaten up. Then, the other side gets walloped. Even when one gets an advantage, it comes at a high price.

The dollar has indeed started the week on firmer footing. The main reason why the dollar is putting up a good fight is because the market is trying to figure out what is more important, yield or growth.

Currency strategist Boris Schlossberg analyzes the major currencies for the week of February 18.

John Mauldin looks at the rather disturbing developments in the municipal bond market, Warren Buffett's offer to "rescue" the tax-exempt insurers, and ponders what the resolution will be.

Stagflation is a devilish mixture: one part slump, one part inflation, and one part who-knows-what. Of course, the feds are eager to put more inflation into the brew.

A stronger than expected CPI number could drive the dollar higher, especially since it will be the first major release from US.

If the Rightmove house prices confirm the recent RICS survey which reported housing prices fell for the sixth straight month, there may be a continued selloff of the pound.

The monetary system of planet earth, circa 2007, is simple. Arab nations export oil. Europe exports luxuries. Asia exports autos and gadgets. America exports dollars. Yes, dear reader, the buck gets around. It has more stamps in its passport than we do.

Federal Reserve Chairman Ben Bernanke expressed concern that the weakness of the labor market will pressure consumer spending going forward. As a result, the Federal Reserve will be lowering their projections for US growth next week.