Gold is a currency and Phillip Manduca is proving this once and over again.
He seems to have gambled his entire professional reputation on gold, reaching the $2,000 threshold by the end of 2010.
He is well worth listening to. His words are illuminated by a previous outstandingly successful record.
The high gold price seems, for the time being, to have reached a plateau, but Manduca of Titan Investments sees a price of gold at $1,000 a troy ounce as a distinct possibility in the near future. He said so a few days ago.
China is now moving part of its massive dollar reserves from the dollar into the euro and gold.
Madoff can be said to have harmed Wall Street, but he has certainly helped the prospects of a booming gold price. The money the Fed is pumping into the economy is proving insufficient to reignite it.
(2) Article from the Economic Times on our options (htp: Jesse, again). It thinks there are three: writeoffs/bankruptcies, increase GDP, inflation. The first is politically unacceptable, the second cannot be achieved by monetary means alone, so it's to be the third:
The stage is set for a long period of slow growth as debts are worked down and a rise in inflation in the medium term.