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Fiat money vs real money

It is curious to hear today about the strength of of the USD in the context of a strong price of gold. When investors talk about the strength of the dollar, they do it using DXY, which is an index that represents the behavior of the U.S. currency vs a basket of other trade weighted fiat currencies, typically the ones from other developed nations. In that context, the dollar is strong. But when measured against gold, the real money, both the USD and the other fiat currencies are weakening. Gold is not going up in price, is the fiat currency system the one that is weakening vs gold due to excess debt and money printing. The chart below does not show an anomaly because it’s not comparing apples to apples: the black line shows the strongest fiat currency among other fiat currencies, while the yellow line shows the weakening of the fiat system, exemplified in the USD. The implications of this discussion are huge.


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