Grant you are correct in what you say but so is Xeres,gold will continue it's run with or without the $US.
Also the Chinese will be allowed to buy Gold from June 1st which imho is THE most bullish sign for Gold,they have a love affair with the stuff and how many Chinese are there????.
Here is an extract from The-Privateer:
The US is pumping UP its money supply at the same time as it is forcing DOWN its interest rates. It is creating a situation in which holding its currency is an "all risk - no reward" proposition. It's fiscal and monetary bureaucrats and its government actually profess to believe that a currency treated in such a manner can not only remain viable, but will remain acceptable globally as the world's "RESERVE CURRENCY". We have news for them - IT CAN'T AND IT WON'T!
In the face of this, Gold cannot help but rise, and it is indeed rising in US Dollar terms. But so far, the rise is in no way keeping pace with the path of destruction which the US Dollar is following, desperately aided and abetted by both the Treasury and the Fed. To profess "concern" with the prospect of falling prices, as the Fed is now doing, is preposterous. What the Fed is REALLY concerned about is that the credit-creating profligacy of the past decade is about to turn and savage its author.
The great fear now is what will happen when the Treasury DOES get a new debt limit and can legally go back to its "normal" methods of selling its debt paper. At that point, the UPWARD pressure on US market rates will be let loose. And at that point, the task of keeping the $US Gold price "under control" will prove impossible. THAT is what the Fed is trying to distract the markets from by yelling about the dangers of "deflation".
