How about some reality, because the USD IS STUFFED
The usd has been depreciating for decades in real terms against real currencies - gold. Every time the Fed prints more money (Wednesday), it continues it's slide.
"They can create an endless supply of new paper money using the fractional reserve banking system. We cannot endlessly increase the supply of gold. "
You can look at cycles in the US economy and say, 'funds are coming back', 'the dow is going back up' and you may be fooled into thinking that this is real wealth accumulation. The dow could soar to 15000 points now, but it would be $US that are invested. If the $US is worth less than it was 10yrs ago against real currencies in real terms (which it is), then the dow being at 15000 means stuff all. Look at the 2nd chart at: http://www.ciovaccocapital.com/sys-tmpl/dollarvsgold/
To think the US economy is on its way back up because a 3 month report showed a minute gain in consumer spending is really naive. You don't understand the situation. The quality of debt that has provided the asset backing for it's currency is smashed to pieces. The assets (houses) themselves are still falling, and any stabilization looks to be miles away, let alone gains. Do you remember what happened to Japan in the 1990's, and why? Look at the way their property and currency have performed since, and you'll get an idea of what's in store for the US. This will have a much larger effect on gold than any other event in our lifetimes. Compound this with the size of the $US reserves being held throughout Asia, and gold has never looked better.
MON Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
