There goes the AAA ... and how about that oil/dollar relationship?

Standard & Poor's finally pulled the plug on the AAA ratings of MBIA and Ambac Financial. Both had their insurance financial strength ratings lowered to AA from AAA. From the S&P statement:

"The rating actions on the companies reflect our belief that these entities will face diminished public finance and structured finance new business flow and declining financial flexibility."

Meanwhile, how about that monster $5+ move in oil! Did any economic fundamentals change? Nope. But the dollar tanked against the euro on Trichet's hawkish comments. Is there anyone out there who can seriously argue that the falling dollar hasn't had an impact on oil and commodities prices? And shouldn't it be obvious how to put the knife in the heart of commodity inflation once and for all? Raise interest rates and defend the dollar.