The Treasury secretary of the US mentioned his openness to a Chinese proposal to a more basket oriented global currency. This in effect puts into question the US dollar as the reserve currency of the world. Additionally, it puts to bed the charade of a strong dollar policy. Of course, Mr. Geithner switched gears when the dollar dropped heavily after those shocking and downright unAmerican words.
Treasuries sold off since down the road investors know not what yield would compensate them for holding US dollars. The top appears in, concerning this market. Asset market (and anything not nailed down) valuations are also put into question.
As currencies bounce around, one thing stayed consistent and that was gold. Though I hesitate, I believe it is a screaming buy.
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