It's interesting that a struggle is currently underway by various entities to establish a one-world currency. Up until recently, the US dollar has been winning the war as most important things have been denominated in dollars.
Then the euro came on the scene and challenged the dollar hegemony and was doing quite well until a negative vote on the EU charter by the French and Dutch vote. Small wonder as the charter, as presented, steals national sovereignty from said countries.
On one hand, I am quite surprised as I expected the euro to do much better given the problems plaguing the dollar i.e. US trade and budget deficits, inflation, etc., yet the euro may rebound from all of this eventually. On the other hand, I have always agreed with a quote from Murray Rothbard that "fiat currency by any other name smells just as sour". And it appears that a general consensus is forming that agrees with him. The big investors who have lost confidence in the US dollar (with good reason) are now loosing confidence in the euro as well.
The article at the link above indicates that some of these players are choosing a third alternative as their "play of choice" and that is gold. Currently, gold is rising against both the dollar and the euro. A de-coupling is taking place whereby previously, as the dollar went up against other currencies, the cost of gold went down. That relationship is clearly demonstrated in these two graphs.
However, these graphs also show that, in the last several months, both the value of the dollar and gold are going up. The dollar is rising due to a lack of confidence in the euro and the price of gold is going up as a result of a bigger lack of confidence in the dollar.
It's ironic that all of this is happening since, as I mentioned above, there is an effort under way for a one-world currency yet the ideal one world currency has existed for the last 5000 years...gold. The problem is that gold represents an honest measure of exchange. The powers that be aren't interested in that. They want a measure of exchange they can manipulate and inflate. Remember that inflation is simply a tool that a government uses to transfer wealth from those that have it to those that want it.
Perhaps these thoughts will be influential if you're thinking about the best place to put your money where it will represent and sustain your true wealth as it is protected from a government's proclivity to steal it from you.
Also, if you're not thoroughly bored from my droning on endlessly, a response to 's Pirhanas in the Blogosphere below can be found at the Feedback Page.
