Thursday, December 01, 2011

Gold Ahoy!!!

Not long ago, mob jeered US dollar and bayed for blood. Euro was then being touted as the suitable replacement.

Today, the table has turned on Euro itself and the jilted greenback has come to the rescue of it's half brother as Central banks around the world cut back the rates on dollar swap lines. Without addressing the root cause, these remedies (same drug under different generic names) will only deepen the crisis.

In last many years, all we have seen is, more dollars followed by more greenbacks in the market. This will certainly translate into more debts for Euro zone & uncle Sam but the yellow metal will keep on shining, brighter and brighter.