During the first half of 2014 much ink has been poured by the lame stream media on the Syrian conflict, the Crimean theft, the Iraqi meltdown and most recently the failed Middle East peace talks. But what has surprised the movers and shakers the most has been the resilience of gold coming to the fore. Apparently its death was greatly exaggerated; based on the predictions of Goldman Sachs (notice the preeminence of gold in their name) gold should have collapsed by now. However, as with predictions gone wrong by the most savvy of soothsayers we are reminded of Thomas Watson, the then head of IBM, who in 1943 said, “I think there is a world market for maybe five computers.”
In the scheme of things we allude back to the days of old when gold reigned supreme. The almighty dollar as with the pound had gold and silver at their back. As things change they usually revert to days gone by. And now it is dollar’s turn to face the unpleasant music. Apparently the world has caught on to the vice, at least South Korea, but again the major news is hidden in the forbidden city of the Federal Reserve which has put a scare into their corrupt monopoly.
What gets us excited about gold’s new fortune is the trading in the Chinese yuan (aka renminbi) by American companies. Obviously this does not sit well with the Jane Yellens of this world and for good reason. If the dollar becomes a secondary reserve currency interest rates will shoot to the moon with inflation following in the chemtrail. Not a good thing for the wallpaper hangers.