the USA$ is king but the transition is taking place as we speak. This last 3 months has caused changes to the standing of the US that otherwise would have taken 10 years.
My view is that the US$ is artifically strong for two reasons:
1. the financial markets that are unravelling now are requiring US$s to settle and unwind; and
2. people don't know where to turn and the safe haven status that the US$ has enjoyed means most won't move until there is a more settled alternative.
As 1 above plays out watch a lot of money flow to gold until 2 above is decided!
