The New Marshall Plan
It's funny how readily history repeats itself.
After WWII, the Marshall Plan was implemented in an effort to rebuild Europe and to bolster it against Soviet expansionism.
We're going to see a similar occurrence in our generation.
The U.S. may one day yield its throne of economic dominance, but not today. Europe will need aid in order to stand up to a hungry Russian Federation. The U.S. government will be more than happy to supply this aid.... for a price.
Despite what I and others see as crippling debt and poor unemployment levels, the U.S. is showing remarkable resiliency despite a global economic slowdown.
As such, I can see the USD Index rising to 90-100 territory much to the chagrin of goldbugs, me being one of them.
Let's see how this all plays out. One thing is for certain, whether or not it's related to my New Marshall Plan theory, is that it's clear that there are forces with enough clout, whether following a master plan by TPTB or whether it's real bullishness on the future of the greenback, is that gold will indeed continue its decline.
Maybe those yoyos over at Goldman know what they're talking about? I dunno. I guess I'll wait until after U.S. QE is completely over with before adding to my PM positions. I like TGZ's future position of little to no debt come 2015Q1. We'll see.
Shat (Oy Vey)