"There is no means of avoiding a final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion or later as a final and total catastrophe of the currency system involved."
- Ludwig von Mises

Tuesday, October 5, 2010

Currency War Fueling GOLD

Looks like the early news today about the Reserve Bank of Australia surprising everyone by leaving the cash rate alone, and the Bank of Japan cutting its key interest rate to a range of 0.1 to 0 has pushed gold higher.

Not much to add to this...  we're in a currency war and gold is the barometer, regardless of what Strauss-Khan thinks.  The markets aren't dumb.  They're voting for gold as the only remaining currency worth anything.

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