Death of the Fiat Currencies

As predicted, gold has held its key retest of the rectangle.  Tomorrow will be important.  We're watching for a key turn early next week.

Anecdotally, a year-and-a-half  ago a few of us had a nice dinner with some Swedish and French colleagues.  At that dinner, one of our French colleagues remarked that this crisis would destroy the dollar and that the era of US dollar hegemony was over.

While we're no fan of any fiat currency, a certain amount of hubris emanated from that conversation.  The retort was simple:  the US dollar will fail, but so will the euro before it is all said and done.

Given the panic buying into gold by Europeans that has escalated dramatically when, as recently as six month ago, these same Europeans believed that a socialist state supporting the easy life could be had by simply combining the currencies of several socialist states against the US dollar--well, you get the picture, dear reader.

No one is safe.  They are all fiat currencies--they simply fail at different rates.

The big implosion is not yet upon us yet, though it will be.  Those that want to protect what they have and chance prospering will be nimble...