With the stock market continuing its collapse, gold moments ago crossed the $1,800 barrier.
After a brief rally in stocks yesterday, when Bernanke told the markets he would keep interest rates at 0% through mid 2013, the market is once again paying attention to the drama unfolding in Europe.
Today the contagion has spread to France, where their bank's share prices plunged across the board amidst rumors that failures could be imminent.
Italy saw its stock exchange once again free fall to limit down.
Because our banks are interconnected to those around the world, the American financials have been taken out with the trash. Rumors abound that Bank of America, the most underwater and insolvent bank in history, may need additional government funding to support its toxic debt and massive employee bonuses.
Under the smoky haze of the global financial rubble, more and more investors are beginning to put together the pieces and understand how the final endgame will play out.
With the financial system insolvent, and the governments that back them insolvent, the last remaining saviors are the central banks to preserve the current system.
They will do this with a tsunami of printed currency that will wash upon the shores and destroy whats left of the middle class and poor in the Western world. Banks will be saved and the record setting bonuses will remain untouched.
Then comes violence. Then comes five digit gold.