With all due respect to Mish, whom I have read regularly throughout the years, I think he is missing the boat.
First, it doesn’t matter what he deems as “ridiculous hype”. The ONLY thing that really matters is what the bulk of investors believe and feel, and what their confidence level is in the dollar. Witness the fact that the dollar had been swooning in earnest long before these “secret meetings” were divulged. Gold touched $1024 two weeks ago before this article even broke. What was the “ridiculous hype” that was pushing gold higher then? There was none. The rest of the world – and a growing number of investors – are simply starting to get freaked out and fed up.
We all know that the global financial system is currently nothing more than a sophisticated, high-stakes Ponzi scheme. Our government shuffles paper around to mask its insolvency, and banks cling to meager reserves in the hopes that runs aren’t in their future. This whole system sits on a gigantic bed of kindling, and it only requires the tiniest spark to send it up in flames.
So the focus really shouldn’t be on whether the story has been hyped or whether it has any truth. The focus should be on the fact that investors THINK it’s true, and the very fact that they even believe this is telling. Because it means that the one thing that was keeping the dollar afloat – confidence – has now been lost.
