By now, you know that the Federal Reserve and other central banks promised to supply dollars to help bail out the Eurozone. The FED is going to be the lender of last resort for Europe.
The dollar fell. Gold rose. There will be lots more headlines like this over the next decade. This is not going to be a one-time event.
Bernanke is determined to keep the dollar’s price in euros from soaring. A European system-wide bank run looms. It will be a run into the U.S. dollar. To forestall this, the FED promises to pump and dump.
This means that the interests of the public, which has its money in the bank, will be sacrificed. The FED will inflate to keep large French banks solvent.
If you ever thought that the FED was not in favor of a strong, reliable dollar, you have more evidence now. You are going to get lots more evidence.
Your friends and relatives who think owning some gold coins is all nonsense had a chance to see what happens when our central bank puts France’s banks first.
You are not a crazy person. You can see what’s coming. Keynesians will sacrifice the dollar for the sake of bailing out foreign banks.