No fiat currency today does what money is supposed to do, which is to serve as a neutral tool in commerce. Instead, national currencies are being tinkered with and inevitably weakened by central planners following misguided policies that do nothing but disrupt the market process and economic activity.
Money is truly in a bubble that has ballooned for decades. Whether the money bubble pops in 2014 or at a later date cannot be predicted. But central banks and governments have not changed the laws of economics. They have not changed the underlying fundamentals of money.
In the words of J.P. Morgan in testimony before Congress in 1912: “Money is gold and nothing else.” What was true then remains true today. Only perceptions have changed, and today's misguided perceptions have created the Money Bubble. So, will 2014 be the year that gold finally clears $2000? I think so. Despite its setback in 2013, holding gold has been a winning strategy for 13 years. And it will remain a winning strategy until central planners in government once again understand J.P. Morgan’s wise insight into money.”
- James Turk via King World News: