Well, I’ll admit that I’m baffled. Gold continues to go down while the dollar continues to strengthen. It seems like every day the dollar makes a monster move up. This seems to be contrary to what should be happening.
In some ways, I can see how the dollar keeps going up. It appears to be the best house in a really schittty neighborhood. I think Europe is in worse shape than the U.S. and does anyone really trust China or Russia? Russia shut down their markets recently which is no way to build confidence.
I’ve heard talk on this board about how China could create a new world-crushing currency if they just backed it with gold. However, would people really trust China to administer a global currency even if it was supposedly backed by gold? About the only thing I trust to buy from China anymore is garbage bags. I make sure that anything I eat or eat out of or pretty much anything I would normally touch without washing my hands afterwards doesn’t come from China.
