Richard Russell - Gold, the Dollar & Loss of Confidence
Richard Russell is the Godfather of newsletter writers, he has been at it for over half a century and his piece on July 28th was excellent. You have to remember that Richard penned this the day before the release of the critical QE piece from Fed Governor James Bullard. Russell could not have timed his comments any better.

"What will the Fed's reaction to all this be? My opinion is that the Bernanke Fed is becoming progressively more uncomfortable with the way the economy is going, and they are getting ready to pull out their "big anti-deflationary guns" in an other attempt to pre-empt deflation. The anti-deflation "guns" that the Fed manages are zero short rates, buying longer-term bonds and speeding up the money "printing presses."

But it is not stable to combine low yields, high deficits and governments that are happy to see their currencies depreciate. Something has to give.

"Something has to give." sticks in my mind. What is it that might give? Could it be the price of gold? Gold could rocket higher when it is widely accepted that it is the only real and trustworthy money, money that needs no counter-party and that gold is the only money that has no counter-party. Gold is wealth on its own. Every nation in the world can collapse and gold will still represent unquestioned and eternal wealth."