By Dominique de Kevelioc, de Bailleul
Beacon Contributing Writer
Gold‘s relentless march to new highs denominated in the world’s major currencies of the Euro, Yen, Sterling and, now, the Dollar cannot be glossed over by puppet guests paraded on CNBC armed with their "barbarous relic" and "gold bubble" scripts. Even bag-man great-pretender gold-bug patsy of Wall Street, Dennis Gartman, can’t talk his way out of this 12-alarm event.
Gartman always appears to regret the rise in the gold price, or how reluctant he is to "bet" against the Dollar by holding gold. Just YouTube Dennis Gartman and listen for the carefully crafted backhanded bullish spew regarding the yellow metal, undoubtedly practiced in front of a mirror before he’s on cue to recite his lines. In return, good little Dennis is rewarded with repeated appearances on CNBC and exposure to what he sells, a newsletter, the Gartman Letter. Someone swears after each CNBC appearance the weak-chinned Gartman leaves a polished apple on GE’s Jeff Immelt’s desk. Sorry Dennis, no one likes a double agent.
The search for the truth in this propaganda war against sound-money principles is elusive unless you know the various animals of the Kingdom.
The realization of Europeans and former lovers of the Euro that it, too, is slated for the fiat currency graveyard has lifted gold to new highs in a bunch of important currencies. As the Dollar gold price approached new highs during the Thursday’s market meltdown, even Larry "King Dollar" Kudlow had to admit gold’s strong rise against the ol’ reliable Dollar and the safety trade it once represented signals an ominous turn of events. "Gold, the world’s new reserve currency," exclaimed Kudlow.
"Clearly, gold has become the only reserve currency not backed by debt," said James DiGeorgia, publisher of GoldandEnergyAdvisor.com. DiGeorga expects Dollar gold to reach $1,500 by year-end.
Trichet and the ECB caved in ! over the past weekend to a policy of printing euros, becoming the latest contestant on the Price is Too High–the Euro, that is. Europeans bought gold in such large quantities, many bullion dealers and retailers were caught off guard and couldn’t meet panic demand for the newly found "money." For example, online precious metals dealer, Kronwitter-Munzen, is no longer taking orders, leaving a message on its site that reads:
"Dear customers, due to the enormous number of orders we can take at the moment no new orders via the Internet, email or fax."
The sound money advocates were heard all week chiding Jean-Claude Trichet and the EC for giving up on the Euro. Famed investor and ex-partner of George Soros at the Quantum Fund, Jim Rogers, said the ECB is playing copycat to the Fed’s Dollar debauching operation, a miserable mistake echoed last weekend by Bundesbank central banker Axel Weber, who said, Trichet’s policy change to purchase government bonds now "poses significant stability risks." Rogers said the move by the ECB to instruct Euro zone banks to buy sovereign debt is just "another nail in the coffin" for the Euro.
As of 9:11 Thursday morning in New York, the Euro still can’t get up from the mat, trading at 1.259 against the Dollar.
"Managing" currencies has always been a political tool, but Rogers and other astute investors make gobs of money during times of political turmoil. Rogers expects a complete breakdown of the Euro and "won’t sell" his gold.
"It's a political currency and nobody is minding the economics behind the necessities to have a strong currency," Rogers said. "I'm afraid it's going to dissolve. They're throwing more money at the problem and it's going to make things worse down the road."
Demand for gold has just turned mega-global almost overnight. It appears cooky tinfoil-hat wearing analysts predicting $5,000 gold sometime this decade may not be that crazy after all.
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