Friday's downgrade of the US debt rating by Standard and Poors is the straw that broke the camel's back, but it came too little too late, as the downgrade should have occurred a long time ago. The fact is the US has been defaulting on its debt for years via dollar devaluation. One clear evidence is the fact that for the last ten year gold, which is "real" money, has been appreciating on an average of 20% per year, which would have appreciated much high had the Federal Reserve along with the US Treasury not intervene to suppress the price of gold.
A rush out of fiat currencies and into safe haven gold is now intensifying. The stage is now set for gold price explosion and the collapse of the paper currencies around the world. The rush has just begun. I have no doubt the Federal Reserve would try to push gold price down in their attempt to slow down the speed towards total monetary collapse. How successful will they be in slowing down the endgame of total monetary collapse is difficult to forecast, but one thing for sure is that gold price volatility will surely increase causing wild price swings (up and down) as the battle for supremacy intensifies. Eventually the gold camp will win the war that would leave those trying to short gold in the dustbin of history.
