President Hu said the US is printing too much money and is the cause of global inflation. Global food inflation is at 25% for the year. Imagine how that effects those who barely get by.

Our Fed is hurting those least able to afford even to eat!

Hu is also threatening to change the currency system and remove our status as the reserve currency of the world. That would be devastating to our economy as interest rates would skyrocket from these levels.

You think it is not possible? It’s started, in that China has been dumping US dollars lately. They cannot do it rapidly, because they own too many dollars in the form of US Treasuries, but the selling has already begun.

Destruction of a currency has never paid off in the end and it won’t this time. So if gold breaks out, we’ll need to buy more. For now, it’s in a correction and so are gold stocks.

There could be a bounce of gold and gold stocks from this level, but I don’t see it yet.

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