us banks in big trouble?, page-27

the flight to the US $ is no more of a cult ( established as the default setting for panicked investors than Gold is.
but the US$ is something that has less and less face value the more its dilluted.
the 'so called' Gold Bubble cult is not fully understood Ctindale if you think that is being hyped and has no validity.
moves by swiss trading houses to establish settlement terms with Gold bullion later this month, efforts by the chinese to hedge against inflation by circulating a gold curency unit, moves by central banks to buy massive quantities of the metal, and the likes of Hugo Chabez and other worried holders who can see there is a discrepency between the gold physical and the gold promisory.
as predicted, there was talk of QE3 yesterday and that will lead to more money in the market, the intitial rush of which will see equitites rise as the bankers use it to force a rebound in order to take profit before the reality sets in again and all those holding us$ denominated currency will see their holding has been dilluted. just llike a company issuing more shares to raise cash.
if anyone still beleives the us$ is the way to hedge against inflation and asset value cvorrection, then good luck to you, but i have faield to see any logical reason why the currency is being seen as a real place to park 'YOUR' money. more likely it the brokers and fund managers doing what the text bok says..
fine in times before when there was not the credit crisis or the massive insolvency in the worlds major economies. but in the current situation, those old attitudes are laughable.
the world has a 'confidence' issue. the paper money we use to trade is being shown as a massive ponzi scheme, which as we all know works well until someone pricks the confidence of the many and the requestsd for assets from the holders exceeds the actual worth of the fund.
THIS is what is happening to the US$. the catalyst will be a greek default.
and yeah, gold will be volatile too, but the only end to this debt/confidence crisis is to return trust in the monetary system. pumpin worthlespaper is a band aid and the bleeding will continue,
but actually drawing a line under the real value of the currency by backing it with a stable, finite and valuable asset is the only way to do this.
gold physical will be wealth, gold producers will be the new printing press.
if this is not the case, then please someone tell me the only other way out of this without turningt he worlds economy into the japanese style stagnationary or deflationary type.
there has to be a circuit breaker to reset asset and currency value. the only internationally agreed asset they can choose will be gold........... quid pro quo