I hate to perpetuate the media hype, but it is what is driving the markets right now. In early morning trading we have already seen oil prices surg past $143 a barrel for the first time ever, and the price for a gallon of gas hit an all-time high in the United States.

Managing currencies is simple if you understand the fundamental principle: supply and demand. I told you it was simple. The "supply" comes from the currency manager. Today, that's the central bank and Treasury Department or Ministry of Finance. They produce base money, which is actually the only money in existence. Base money is mostly coins and bills, and a little electronic bank reserves.