The death of fiat

The end of the 54-year fiat currency era is imminent — that is gold’s message. Increasing credit risk means higher interest rates, which will burst credit bubbles.

The yield on the long bond is ready to break out on the upside over 5%, giving a technical target above 9%. Implications for all financial markets are dire.

Introduction

That central banks are ditching dollars for gold and have been for at least the last four years is an important message for us all. Geopolitics and even US politics are involved: but the fact that this widespread rebalancing of reserves is taking place is the clearest indication that the ultimate insiders to the currency game know that the dollar’s gig is nearly up.