One of the consequences of a Fed rate cut will be a weakening of the dollar, especially if other central banks do not reduce rates proportionately. To get straight to the point, the way to play such a move would be to go short the U.S. Dollar Index and/or go long gold. The first one is overbought and the latter is oversold. Both are due for a correction. Related Securities: Power Shares DB US Dollar Bullish Index Fund ETF (UUP); Power Shares DB US Dollar Bullish Index Fund ETF (UDN); and Spyder Gold Trust ETF (GLD). A bet against the US $ and for the Australian $ is FAX. It bounces when the US $ weakens or the Aus $ strengthens. The yield is over 10%, and I think the Aus $ will continue to strengthen against the US $. I am long FAX. Should you be?It's a bit easy to state that the US Dollar will get weaker, after it's run like a scalded cat up a tree, since Sept. 22nd, peaked two days ago, and had a rate cut today. Hopefully the commentary that follows lists the pros and cons of a "King Dollar", and discusses why currency manipulation, and credit market breakdowns dictate world politics, and our bizarro world of stock market performance.If everyone lowers rates 1% who wins. Currencies stay relatively the same. So who? Well considering banks aren't lowering the rate they are loaning $ out basically only the banks win. Great. Aren't you happy. Coupled with the bailout that will only go to keeping big banks paying execs million every year no matter what they do, the general public will be screwed in 2009. Look for 8-10% unemployment and bankers taking holidays abroad so you don't notice their excesses.

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