I like gold as you know, but theories don't make money.
Gold should be $2000/oz.. it isn't because emerging markets are all bust.
Will the AMERO be backed by gold?
Not a chance, too many folk around the world are still buying their Hewlett Packard laptops, eating their McDonalds, buying their Microsofts with Intel chips installed whilst watching Disney-made movies in the cinema. Why does it have to be redeemable? It doesn't have to, the yanks will not go revert back to the gold standard.. they will tighten controls on the OTC markets create new clearance houses and that's about all that will happen. There will be no radical re evaluation of currencies as far as I can see.
However inflation ay inded start kicking in about three months time due to the amount of liquidity that is being poured into the market..as the saying goes don't fight the Fed.. BUT it's not the Fed alone it's all the Western Central Banks pouring liquidity into the markets...
This is surely inflationary and good for gold, but there are no signs of it yet.
What we will see, is the US economic picture flattening out at some stage and Europe and Australia will be getting worse..Do not be suprised to see the USD & gold rallying together at some stage.
