There is little capitalism in the world now and there is little in the way of free markets in the world, also. So, those things are not at fault despite government types saying those are what failed. They sure as heck can't be expected to blame themselves or their failed "monetary" "systems". Honesty is not a con man's or a thief's specialty.
Probably we are going to see the end of the USD as the world's single reserve currency and in its place a number of gold "backed" government fiat tokens, starting with Russia, the Arabs and a Persion Gulf token. Probably in 2010. If they were to be **redeemable** in gold, they would not be tokens. They would be currencies. Gold and silver are not redeemable in anything. That makes them ***money***. Something that has no liability attached to it, no debt attached, zero, zip, nada attached. Money is final settlement!!!! Since 1971 there has been no final settlement which is why the "system" broke back then and is now about to end (the broken pieces finally stop moving). Since 1971 we've been watching a blow up scene in a movie in slooooooooww motion. "gold backed" probably means that the supply of tokens will be tied in a ratio to some supply of gold that the government has control over. So, they will probably use gold to control the supply of tokens but they will still be tokens.
For how long can governments keep their promise to not create more fiat tokens unless they go get some more gold first to keep the ratio between tokens and gold the same remains to be seen. One generation? One decade? Two decades? After all, even with a new "monetary" system, we will still have organized crime in charge of the "monetary" system. Probably it depends on how long a majority of their citizen units remain in a mentally childish and dependent state of mind, how long they constantly produce something to be constantly stolen. Of course if they have no savings, they can not go on strike to stop producing that which is constantly stolen from them and still survive, stay alive. The masters know this. But, then again, some of the masters are just getting by by the skin of their teeth.
So, the fiat token price of gold and silver can go up to the top of this bull market and stay up there with no substantial correction / reaction, in the fiat token price of, if governments adopt some discipline.
The race to the bottom:
BKX Kbw Bank Index USD (INDEX)
(Right click to open in a new tab for an increased size of this astounding chart.)
*JPM fell 67 cents to $15.93, after breaking $15 on the downside.
*Goldman Sachs dropped a hefty $6.07 to $75.65, with a low of $73.25.
*GM is truly disappearing. It sank another 41 cents to $1.45.
*Citigroup (C) held above $1 at $1.03.
*Bank of America (BAC) traded as low as $3 before finishing the day at
$3.14, off 3 cents.
*AIG managed to hold the lead in the race to zero, finishing the week at
35 cents, unchanged on the day.
Government types are saying that these types of institutions are too big to fail, that it will cause more damage if they are allowed to fail. Not. Trying to save them will cause even more damage because to save them, governments have to do more of what caused the problem, taking on more debt, too much debt.
They are not too big to fail. They are "Too big to bail." - Bill Murphy, LeMetropoleCafe. Try as they might, it looks like they will ruin the dollar and some other government fiat tokens in a failed attempt.
Some people will never learn. Oh, wait, maybe they in fact know what they are doing, or at least a tiny group know. What? They don't know what's happening in Zimbabwe right now? They know absolutely nothing about history? Oh, wait. That type of history, the really important stuff, is not taught in government schools. Can't have the slaves learning about reality, they might start running off the "plantation" and jack up "plantation" security costs.
Or, what was that joke... ? ... something about make the jail big enough and they won't know they are in jail?
And now for some fun ("the crappiest generation" "you non-contributing zero"):
Lewis C K, a YouTube video:
Everything's amazing, nobody's happy
(YouTube is not allowing the embedding of this one)
When all hell breaks loose, the real purchasing power of gold and silver can buy a huge amount of real wealth because of temporarily depressed real prices, particularly that in which leverage is usually involved in the purchase of (businesses, real estate). At a certain time in this major cycle there will be a big time transfer of wealth, particularly for those with gold and silver, the actual metals in there own control, own hands, actual ownership.
Remember, there is some tiny percentage of organized crime that gets this and has been working on collecting gold and silver just like the little guy that was hip to the scene and collecting gold and silver way back there. Funny, there is a tiny percentage of organized crime that wants to see gold and silver go up in real terms, purchasing power, just like the little guy does.