NOURIEL ROUBINI: 6 Reasons Why Gold Will Plunge To $1,000

Free Republic

comment:

I read his reasons and I'm not impressed.  He has a reputation.  Reputations count for a lot.  They may even survive sometimes when they shouldn't.  I'm thinking of Warren Buffett.  Buffett got bailed out in 2008.  If he is so smart, why does he need to get bailed out?

People are looking for explanations for things.  So do I.  I have some ideas about how things are the way they are, including gold.

Back in high school, my civics teacher once remarked that the dollar has no value.  It's value depends entirely upon confidence.

Look at it this way, the US dollar is a con game.  It can only work if you believe them, and believe in them.  Once they lose credibility, meaning the government, the dollar is finished.

Do you see reasons to be confident in this government?  Those of you who do are the ones propping up the dollar.  Those of you who do not are not helping the dollar.  You will not be liked for that.  Evidently, Roubini must like what's going on.  I'm not so sure.   Anyway, this kind of dynamic has always existed.  There are always going to be those who dissent, even in totalitarian regimes.  We aren't there yet, but we are getting there.  Still feeling confident?  Anyway, once that fear dynamic reaches the tipping point, the dollar will fall.

Buffett still has his reputation.  The dollar is still strong.  Maybe both survive.  At this point, I'm not betting the ranch on it.