The worlds now is in a soft money cycle.

The citizenry prefers the most stable money possible as a foundation for contracts and trade. However certain interest groups may influence the Government, or the Government may be seeking an advantage of its own, or simply grasping for a solution in a time of crisis as it turns once again to the monopolization and manipulation of the monitary system. Even if devaluation isn't the explicit goal of this monitary policy (the modern term for this is manipulation), because deflation is so starkly recessionary, the trend has always been toward inflation. (As Will Rogers lamented, "Invest in inflation, it always goes up!")

As the adverse effects of monetary policy become more severe, the citizenry's desire to return to a stable currency intensifies, and it begins searching for ways to do so. They eventually abandon the increasingly useless cerrency or even abandon the offending government itself as they seek a return to a stable monitary system.

Just as with taxes, the rise and fall of in currency quality is mirrored in the rise and fall of states and empires.

The "Buck" has already suffered a considerable devaluation and if George Soros' "reflexivity" theory comes to pass continued devaluation (inflation) can be expected for some time to come!

The ultimate benificiary: you guessed it - Gold and its poor sister Silver!

In the early 1800's classical economist David Ricardo concluded, "Expierience . . . shows that neither a state or a bank ever have had the unrestricted power of issuing "paper money" without abusing the power: in all states, therefore the issue of paper money ought to be under some check or control; and none seems so proper for that purpose as that of subjecting the issueres of paper money to thobligation of paying their notes either in gold coin or bullion.

Ricardo's statements here have a particular poignancy, because at the time they were written the British pound had been floating for 20 years. He was elected an MP and helped reestablish the Gold standard in Britain, setting the stage for a century of economic progress.

"No doubt with with the continued devaluation of the $US, Gold is in very good hands for some time to come!"

RUF

PS: Coincidently, at the same time, on the other side of the Atlantic, the US of A, under the auspicies of Alaxander Hamilton, the first Treasury Secretary, was getting started on the sound foundation of the Gold Standard.

He argued in Congress, "The emmitting of paper money by the authority of the Government is wisely prohibitted by the individual States, by the national constituion; and the spirit of that prohibition ought not be disregarded by the Government of the United States."

He went on to say that, "paper emissions were so certain to be abused!"

Profetic to a word!