Competitive currency devaluations steal work from one country and give it to another. That makes them unpopular in the countries where jobs begin disappearing. This is why currency wars quickly become political hot potatoes. Out of work citizens are angry voters. And angry voters want somebody to do something about the problems.

That is where we are now. And that is why gold – which is nature’s currency and can’t be printed by anyone and is relatively scarce in the earth’s crust – is going up against all that paper money serving a devious master. But as the Aussie dollar reaches parity, something must give.

That is, if now resembles the past few years, this latest move down by the dollar and up by the commodities would be reversed. Gold, copper, silver, tin, oil and the rest would fall as the dollar corrects. Corrects to what, though? Can you think of a good reason why the U.S. dollar should get stronger from here?

We can’t either – unless it’s just the simple observation that everyone is agin’ it and no one is for it. If everyone is a dollar bear, is it a good trade to be a dollar bull? Or is this the long-awaited moment where the dollar begins to circle the hyper-inflationary drain?

It’s a moment we’ve been talking about for years. Does the simultaneous rise of all asset classes against the greenback indicate that the moment is finally here? And if it is….what should you be doing, or have already done?

This is one of the subjects we’ll be taking up next month in Sydney at the Australian Gold Symposium.
Thanks to Daily Reckoning Australia

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