Pimco CEO El-Erian yesterday on Bloomberg lamenting about a "little yellow flashing light". (see 11 minute mark of video)
http://www.bloomberg.com/video/76183286/
El-Erian surprised gold did not continue selling off sees it as a warning sign. Confused by its benefiting from previous "risk off" conditions, gold now seems ready to benefit from "risk on" conditions. Hummmmm, how can that be?...
Mr. El-Erian... I have a clue for you. Gold has done well in the past, and will continue to do well in the future because of fundamentals. Specifically it is the one true currency with enough credibility to measure all other so called currencies, which are in fact nothing more than worthless debt.
All this public hand wringing regarding endless debates on emergency government meetings, spiraling debt, trillion dollar bailouts, monetary easing, interest rates, and government largess are moot compared to the one underlying debate which accounts for them all... the one on fiat.
Nothing will change with regards to hand wringing until conversations on the hazards of fiat begin in earnest. Unfortunately that will never happen (at least not in a controlled manner) as our global fiat system enables government spending (the mother's milk of ALL political agendas) on a scale never before dreamed. To think that they would give up that kind of power without being forced through complete collapse is insane.
And so... that's not a "little yellow flashing light"... it's the proverbial freight train stopping at nothing short of global currency reorganization.
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