Ben Bernanke has been saying that gold will never be used as a reserve currency. As usual, he is completely wrong.
He doesn’t even understand history. He thinks that the low interest rates had no role in the recent housing bubble. Ben Bernanke is completely clueless. He is going to print money into oblivion. If you are planning on buying gas or food with paper, then you are going to need a lot of it.
Gold is a reserve. You cannot back one currency with another. Gold is better than a currency. It is a real asset. Foreign central banks will be moving toward this.
The Japanese have made it more expensive to rebuild. The are still trying to devalue the Yen, despite their debt problem. They are creating so much Yen that there will be an inflation problem in Japan. The central planners won’t want to raise rates, and this will make the cost of imports much more.
The dollar has been showing little strength in the face of these European crises. It hasn’t really gained any traction. It has gotten some growth from the false narrative the the economy is getting better. The Fed is just making this disease worse.