Gold is revalued constantly in relation to fiat currencies, since it seems that many investors based on the premise that the printers of the issuing banks will continue to rotate. This in turn could soon cause further devaluation in the currency markets. James Grant, founder of Grant's Interest Rate Observer, is one of the investors who portend that the dollar does not long to live. In his opinion, it is too late to say goodbye to one U.S. dollars based solely on trust.
According Grant states, "The current financial system and currency system is wobbling, and is so badly built that needs to be replaced by something better. This year the dollar's gold standard detached celebrates its 40th anniversary. This is reason enough to ask how it was possible that a currency without any backing could have survived so long. investors should not make the mistake of valuing market based solely on interest rate policy zero. just do not make sense to invest capital in bonds the state". These assets are denominated in dollars or other currencies fiat, whose value will continue to fall continuously due to the monetary policy of central banks. Grant and takes years to be one of the strongest advocates of a new gold standard on Wall Street.
The most important economic reports today what are the data for manufacturing in the EU, retail sales in the United Kingdom, public loans, initial jobless claims, the index of house prices and the index of manufacturing activity and key indicators in the Philadelphia Fed. The EU summit will focus in most markets, the meeting starts at 11:00 GMT.
However, investors are closely following the current political dispute to see if there is a result of good faith in relation to the expenditure of the United States and its debt ratios.
The recovery evidenced yesterday in the major indexes did not affect too much in the Forex market. In fact, investors are likely to need several sessions Keyed to change their expectations of risk. The saga that is happening in Europe is creating a high degree of skepticism. In this sense, the summit is expected to be followed with special attention by most operators.