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Well, you can’t be too surprised that Dow Theorist Richard Russell is gloomy. That’s his thing, but you have to give him credit, he has a way with words.In his latest weekly commentary, which is excerpted at King World News, he declares the impending death of Fiat Money, and thus an ensuing boom in gold.
In the big picture, I believe we’re going to put fiat money to the test. Fiat money allowed the US to experience boom. Fiat money produced the tech bust, the equities bust and the housing bust. Fiat money is the vehicle that is created and sponsored by the world’s central banks. Fiat money will prove to be a fraud.
Out of the graveyard of fiat money will emerge real intrinsic money — gold. But gold’s time has not yet come. The gold bull market is a very strange bull market. It’s a bull market that has progressed without the participation of the US public. That will change. When it comes, we will finally experience the speculative third phase of the gold bull market.
Back in May, Russell encouraged his newsletter readers to “sell everything” on the grounds that you wouldn’t recognise America by the end of the year. So there’s about four months to go on that prediction.