Gold rally is not a bubble, mania stage ahead of us

By Doug Casey
Governments everywhere – prominently including the U.S., China, Britain, and Japan -- are creating hundreds of billions, even trillions, of new currency units. The backing, or “reserves,” for their various units are other currencies, mainly the U.S. dollar. The problem is that every one of the world’s currencies lacks an anchor in anything tangible; they’re all just floating abstractions.

Central bankers talk, idiotically, about replacing the U.S. dollar with the IMF’s Special Drawing Rights (SDR) for use as an international reserve. The IMF isn’t even a government with police to prevent people from using alternatives to its SDRs. The idea is a complete non-starter. Entirely apart from that, the IMF will eventually be dissolved as a bankrupt shell. But that’s a story for another time. (more)