Friday, July 21, 2006

Going for the gold, they are

"Thus, with no clear alternative in sight, the
financial health of other countries and
currencies is heavily dependent on the US dollar
Ponzi scheme. If the dollar goes down, they go
with it, and as with the prisoner's dilemma,
everybody is afraid to make the first move - the
first one to abandon the dollar could set off a
chain reaction that would backfire and affect
them as well. Thus, the dollar's demise might
take a bit longer than common sense would
suggest, as everybody is trying to evade the
unpopular repercussions."

He goes on to say "Nevertheless, it is
inevitable, and that is why the GCC (Gulf
Cooperation Council) countries need to
contemplate a diversification into other
currencies and gold sooner rather than later."

As soon as he said that the GCC needs to
"contemplate a diversification into other
currencies and gold sooner rather than later", my
brain went into an infinite loop, and time and
space meant nothing to me. I remember thinking,
"He just finished telling us that these
foreigners should get out of dollars and into
gold, and then he tells us that there is not
enough sheer volume of other currencies to soak
up the mountains of dollars that you want to get
out of! That leaves only gold! The guys who are
going to be charging $200 a barrel for oil going
into gold? Wowee!"

They, among many others.

Gonna be a wild ride and don't forget silver.

Full rant.