Wednesday, June 30, 2010

The Illusion of Fiat

While the talking heads sell the strength in the U.S. dollar via the U.S. dollar index as a destination for safe haven capital flows, they ignore the reality that it's value represents relative and unbalanced comparison against only fiat money. The world's premier currency - gold is completely ignored. Any comparison to gold would break the illusion so easily sold to the public.

U.S. Dollar Index:


The safe haven status of the dollar is an illusion based on the premise that it is the best of the worst within a fiat system. When components of the U.S. dollar Index are compared against gold, the sharp, accelerating up trends reveal the extent of the illusion.

U.S. Dollar Gold:


Euro Gold:


Yen Gold:


Pound Gold:


Canadian Dollar Gold:


Swedish Krona Gold:


Swiss Franc Gold:

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