The strength of the dollar is a problem without a solution. There is no satisfactory alternative to the dollar as the reserve currency. It would raise longer lending rates, a positive for the yield curve, and help our exports. It would delay a subsequent stock market rally but build a better base for it. If the dollar does not slide or fall we already have a positive yield curve and relatively low rates across the board.
China now manufactures practically everything.
Therefore, practically everything would be more expensive to a cheaper dollar. Today's close was 1092. I think not. Last weeks increase in volume was redolent of a climax and new NYSE lows were far fewer than in April. Most likely is a protracted period of retrenchment, inventory liquidations, industrial rationalization, and base building for accelerating earnings.