A must-read from Gary North about world tightening monetary policies. His conclusion:

Cash is not trash. Foreign currencies are not trash.
But its safest to hold them in the form of short-term CDs. Bonds are possible as ways for speculative profits. But rising long-term rates are likely because of the unwinding of the yen carry trade. When speculators sell non-Japanese currencies to repatriate yen in order to buy yen and unwind their positions, they will sell non-yen bonds first. That will put upward pressure on long-term interest rates.I see a continuation of bad news for all stock markets. I also see trouble ahead for the U.S. dollar.
I also see what the slogan will be for the Democrats in 2008: "Its the economy, stupid . . . again!"