From Richard Russell in Dow Theory Letters:
Currently, the talk is of "exit strategies." Strategies to undo the damage that the Fed has done. But the Fed isn't finished yet. And the story hasn't been told in full. What happens if a fed-up world decides to exit the dollar? Oil is priced and sold in dollars. What if the oil producers decide that they want a different currency. What happens then? The questions are endless.
The problem -- you can't save the real world with fantasy money. When too much fantasy money is created, knowledgeable people turn to real money -- gold. Which is why central bankers fear and hate gold.
When the world turns to gold, it is turning away from the fantasy ("counterfeit") currency that the central banks create. This terrifies the bankers, whose power comes from their ability to create "money" out of thin air.
Learn more about the excellent Dow Theory Letters here
More from Richard Russell:
The absolute best thing you'll read about gold this month
Richard Russell: The major development we need for a real market bottom
The great Richard Russell on the dangerous secrets of the Federal Reserve