Once in a while someone says something worth listening to.
This guy knows what he's talking about and it looks like we're headed for a global world fiat currency.
That is the final straw that will eventually lead to a complete destruction of paper money but it'll be a while.
The implications of what he's saying is pretty profound.
There is a point where IMO the FED will do battle against gold, they have to and if they do it could trigger a massive panic out of dollar shorts and trigger massive unwinds of a new dollar carry.
That's one possiblity of many but in any event on tap over the long haul is the continued destruction of the dollar, just in an orderly fashion.
That's what makes trading any thesis so hard, unless of course you can match up with what the FED is going to do or have inside information.
What this guy just told you is that while the dollar will fall, they will not allow gold to just rocket straight up, at some point they will raise rates to defend the dollar and that will have crazy aftershocks if they do this out of the blue.
The dollar hit a 15 month low against the euro today. Fifteen months ago was when oil hit its all time high, and yet it is currently half of what it was in the summer of '08. But now we have gold at all time highs (but not when adjusted for inflation, that was in the early 80's).
Is this an indication that we are seeing the same kind of speculative bubble in gold that we saw in oil, and possibly need to remember how that one turned out?
That being said, I've been in GLD for two years now and have done very well. But as soon as I see a cover of Time magazine talking about "gold fever", well I'm out the door.
As far as the dollar goes, I have to wonder what the magic number is for its defense. 70? 68? Lower?
Just like I posted in the "Balloon About To Pop?" thread, there's just a feeling I've got that something big is about to happen, but I just don't know what it is.