Old Mutual Asset Managers' Christine Johnson explains why investors are ditching the reserve currency as its value declines and rejecting US treasuries in favour of gold.
As the US Federal deficit continues to balloon, other governments are switching their reserves to gold. Investors are just selling. The iconic song of every girls' night out, love it or loath it, is ‘I will survive', an over-wrought story of finally learning to stand up for yourself. No-one likes to feel powerless. No-one likes to feel like they are being taken for granted. At the start of the affair there was the knight in shining armour. The US rode in on its white charger at the end of World War Two and did two immensely powerful things. It backed its currency with gold and fixed t...
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