all currencies will suffer - http://burndownthefreakingmission.com
When you follow
the international price of gold, as denominated in several currencies,
you get the sense that there is a declining faith internationally
in the reliability of domestic currency systems. A rise in the price
of gold in multiple currencies indicates a vote of no-confidence
by members of several nations in the monetary policies of those
nations' central banks. The public cannot veto the policies of their
central banks, but they can seek to evade the effects of these policies
by selling their domestic currencies and purchasing gold.
I think we
Read more at www.lewrockwell.com
are seeing a loss of faith internationally in the reliability of
the decision-makers of the nations' central banks. Around the world,
investors have begun to conclude that their domestic central banks
are likely to inflate, and therefore the future purchasing power
of their domestic currencies is at risk. A growing number of investors
have decided that it is better to unload their domestic currencies
and to substitute ownership of gold in some form.
I think Lew Rockwell is right. I've been tracking the currencies and gold relation for some time now and there is certainly an obvious trend of lower confidence in currencies across the globe.
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