By Tim Wood01
In the 1960s we had very strong economic growth in the US and high productivity and low inflation – same thing here in the 1990s – and then it was followed by the Vietnam War. Well today we have Al Qaeda's War. In Vietnam, America was fighting over communism. Today it's fighting Islamic fundamentalism. Same difference the French will tell you! Now the only reason the French know a little bit more is because they got their head handed to them in Vietnam, and they told the Americans "don't go there!". The French also had Algeria, and they said to the Americans you know what, don't go there. Because they got their backsides kicked in Algeria as well. It's not that they really are smarter, they've just been there first.
Some people have gold conspiracies, I don't know about that. The one thing I do know is that those currencies are managed currencies and they are going to probably let them revalue against the dollar but in a very stepwise way. I tell people that one thing about China is that they do things in a Chinese way, which means that on their own time. Tight now my feeling is – and I'm sure Marc Faber is going to talk far more about it and he knows more than I will ever know – but my feeling is it's going to be a very stepwise fashion, you're going to have to wait for that.