THE FED CROSSES THE RUBICON, PASSES THE DOLLAR GOING THE OTHER WAY AND THE GOLD BUBBLE BEGINS.


Todays FOMC statement surely is the writing on the wall for my Dollar Top call from March 2nd. Also I believe it will mark the beginning of a new phase for Gold, the 'bubble' phase. It's price move was relatively muted after the news and I don't expect it to breakout now. Bull markets climb a wall of worry and Gold is certainly beset with it's share with talk of IMF and World Bank selling top of the list of worries. Just I think that when we look back from 2012 we will talk about the 19 th March 2009 as the day it all began and ended or begun to end, oh whatever...

An article related to both caught my eye yesterday

LUXEMBOURG, March 18, (Reuters) - A United Nations panel of experts will recommend next week that the world move away from using the dollar as a reserve currency and adopt a shared basket of currencies instead, one of its members said on Wednesday. Avinash Persaud, chairman of consultants Intelligence Capital and a former currency chief at JPMorgan, said the proposal was to create something like the old Ecu, or European currency unit, that was a hard-traded, weighted basket. "It is a good moment to move to a shared reserve currency," he told the Reuters Funds Summit in Luxembourg. The United States, he said, was finding it hard to manage policy while remaining the reserve currency and the rest of world was also unhappy with the generally declining dollar. Persaud said the recommendation would be one of a number delivered to the United Nations on March 25 by the U.N. Commission of Experts on International Financial Reform.