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The dollar collapse scenario that concerns Einhorn is certainly part of a double edged sword. It could happen, just keep in mind that at this point it has to come from international panic, since Bernanke hasn’t printed any money since February.
The smart way to play this market is to bet on volatility. Which ever way the pendulum is going to swing it is going to swing dramatically. Obviously if there is a dollar collapse, it will be huge. But a strengthening dollar will also be a major move in the other direction. Bet the volatility.
http://www.economicpolicyjournal.com/2009/10/einhorn-currency-death-spiral-ahead.html
They’ve printed a lot of money in the last two years, and it will start working its way into the economy as soon as consumer loan demand picks up next year. Then you can expect food and energy prices to start rising rapidly.