The Great Debasement -Zero Hedge
"The facts are that the euro lost another 1.4%, the pound another 1.1%, and the yuan another 0.9% last week....Everyone should be bellowing from the rooftops, not about the greatly exaggerated death of the dollar, but that major currencies are dropping so fast! Analysts should be inquiring why they are falling, while their paradigm encourages them to think that it is the dollar which is, or should be, falling.
We think it is entirely appropriate to measure these currencies by the US dollar, as they are derived from the dollar. And we measure the dollar by gold. Since the recent peak, at 24.51 milligrams of gold at the beginning of May, the dollar has fallen 12% to 20.34mg. It now seems to be within striking distance of its all-time low set in 2011, about 16mg. In gold terms, since that same date, the euro has fallen over 18%. We don't know why Europeans aren't screaming 'bloody murder' at this not-so-subtle looting. And to a somewhat lesser degree, Americans should be right there yelling too. Instead, gold owners in both currency areas are celebrating. That's because they adhere to the dollar paradigm. Although they know that the dollar loses value, they measure the value of everything else in dollars. They think gold is going up. We have a radical idea: the dollar's loss can be measured in gold. That means: if the price of gold doubles, the gold owner may have twice as many dollars but those dollars are each worth half as much. It is good to own gold, not for making profits but for avoiding the loss of the currency."