Gold: Menace II fiat society

Gold’s catalyst on Friday was an impending sense of doom in US financial markets. “Forget what the Federal Reserve says about being neutral on policy and the news that the labour market grew at double the rate expected by economists in October,” writes Michael Mackenzie in the Financial Times. “What matters is the unwinding of the great credit trade. This is ensnaring more and more financial institutions and threatens to make life very difficult for policymakers as the risk of a dollar crisis looms.”

It seems to us the dollar’s been in crisis for about five years now. But maybe it’s become more acute lately. New lows on the greenback could equal US$1,000 gold. And it could happen faster than you can say “jingle bells”.

Source: Dailly Reckoning