This is silly. This is not a conspiracy. It is the effect of monetary and fiscal policy.
The US dollar has been in terminal decline since 2000. This is because the US government and Federal Reserve have reacted to the collapses of the Tech Bubble, which led to the Housing Bubble, by running deficits and flooding the financial system with liquidity.
The reason why the dollar keeps going down is simple. When rates are as low as they are in America, traders borrow at low rates and then buy bonds of countries which have higher interest rates.
It works like this. A trader can borrow at a short-term rate of about 0.5% in the US. He can then use those funds he borrowed in US dollars to buy the same instrument in Australian dollars at 3.5%. Borrow at 0.5%, lend at 3.5%, make 3%. This is the oldest trade in the book. It is called "the carry trade." Google it if you want to find out more.
Borrowing in a currency is effectively selling the currency in which you are borrowing. Lending in a currency is effectively buying the currency in which you are lending. When you borrow US dollars, you are selling US dollars. When you are lending in Australian dollars, you are buying Australian dollars. The US dollar goes down, the Australian dollar goes up.
Gold is going up because the US is effectively devaluing its currency to monetize its debts. Thus the dollar goes down. Because the dollar is the reserve currency, it drags all other currencies down with it. Thus, real assets like gold rise.
End of story.
The US dollar has been in terminal decline since 2000. This is because the US government and Federal Reserve have reacted to the collapses of the Tech Bubble, which led to the Housing Bubble, by running deficits and flooding the financial system with liquidity.
The reason why the dollar keeps going down is simple. When rates are as low as they are in America, traders borrow at low rates and then buy bonds of countries which have higher interest rates.
It works like this. A trader can borrow at a short-term rate of about 0.5% in the US. He can then use those funds he borrowed in US dollars to buy the same instrument in Australian dollars at 3.5%. Borrow at 0.5%, lend at 3.5%, make 3%. This is the oldest trade in the book. It is called "the carry trade." Google it if you want to find out more.
Borrowing in a currency is effectively selling the currency in which you are borrowing. Lending in a currency is effectively buying the currency in which you are lending. When you borrow US dollars, you are selling US dollars. When you are lending in Australian dollars, you are buying Australian dollars. The US dollar goes down, the Australian dollar goes up.
Gold is going up because the US is effectively devaluing its currency to monetize its debts. Thus the dollar goes down. Because the dollar is the reserve currency, it drags all other currencies down with it. Thus, real assets like gold rise.
End of story.