Will Current Expectations of a $ Devaluation Cause Gold to Breakout?

By Julian D. W. Phillips, GoldSeek

Some sage gold watchers are expecting a major $ devaluation before the end of the year! Some say it could be any day now. Certainly the fundamentals have pointed that way, as we have discussed for some time now, this despite the repeated “Strong $ Policy” statement from this and the last Administration. The concept is no doubt alarming and implies a radical change in global economics. We believe that should such an event occur it should be seen as a culmination of major changes precipitated by the ‘credit crunch’, the rise of China and the imperative need for a change in the currency world to accommodate these events. If such a change is not made, the currency world will see major structural fractures that will hurt the stability of the global economy, dramatically.

As you have seen from our work on this subject over the last few months and will see as this picture forms, major changes are inevitable. The question is, will they come about through a civilized adjustment or must confrontation and unilateral moves be needed?

Caveat
We issue a warning in case this should happen; the entire currency world will be thrown off balance by such a move and every currency on this planet will feel the reverberations of such a devaluation and for some time to come. If it happens in a civilized manner, it will still happen ‘overnight’ and catch us all by surprise. If confrontation is involved, add fear and trepidation to that surprise.

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