The winner in the race to the bottom has one clear cut winner thus far. Ben Bernanke has unleashed hell on the US Dollar and subsequently sent other currencies soaring in the face of QE2. The Euro has rallied 10% since September 1st – an astounding move in the FX markets. I am shocked that the ECB has not done anything to defend the Euro’s rise. Although the Japanese have failed in their attempts to talk down the Yen I would assume that a multi-national assault on the dollar would begin to impact the market substantially. Thus far the USA is clearly winning the race to the bottom and the clear cut losers are the Japanese and Europeans who are almost certain to see weaker exports as a consequence. Not a good thing for nations with very weak economies. Risk assets and commodities obviously love the liquidity trade overnight as gold, copper and S&P futures all hit new highs.