Underwater Ping-Pong: Currency War Update

Redux: Let’s Get Physical

Well, now, gold is (as we speak) making itself comfortable above $1,300.  Some profit-taking is being reported, of course, but, as a metal trader at LaSalle Futures Group in Chicago puts it, “There’s nobody in the dollar-bull camp. The Fed is cranking up the printing press again, and the dollar is going to suffer for it.”  ‘Nuff said.

For those that think this is merely “yet another bubble” in the forming, think again:  Gold is a long way off yet from it’s inflation adjusted high of roughly $2,200 per ounce.  More to the point, the dollar has never been quite this damaged before, excepting the post-revolutionary and post-civil war eras, perhaps.  What we’re seeing here, really, is the nascent stages of the bursting of a bubble, in this case: the dollar bubble.