Gold is on course for its third week of gains, buoyed by a weak dollar, no definite end to quantitative easing and continuing ultra loose monetary policies. Central bank gold buying is also supporting gold.
For the very first time in our history all money, all currencies, are now fiat. The US dollar used to be gold backed and it was the rock to which all of the world's currencies were anchored. Our 41-year experiment with paper money is almost over.
Defenders of fiat currency schemes claim that they promote stable prices and moderate economic volatility. In fact, the opposite is true. Fiat currencies not only destabilize economies but undermine the moral basis of society.
Judging by the mail the situation seems dire and ominous to many. We don't have the numbers, but we would wager that the number of times the words "collapse," "panic," "recession," and "double dip" are being used by is near a high point.