is the fed in trouble?, page-3

"...the present crisis in the West will ultimately end up discrediting mechanical monetarism -- and with it the fiat paper-money system in general -- as the U.S. paper-dollar standard, in place since Richard Nixon broke the link with gold in 1971, finally disintegrates.

The catalyst will be foreign creditors fleeing the dollar for gold. That will in turn lead to global recognition of the need for a vastly more disciplined global financial system and one where gold, the "barbarous relic" scorned by most modern central bankers, may well play a part."

The conclusion to the article
"The Fed Is Out of Ammunition
A discredited dollar is a likely outcome of the current crisis" by Christopher Wood at The Wall Street Journal http://online.wsj.com/article/SB122748912533552007.html