Would you rather

place your savings into paper dollars,

or in a partial ownership of a mineral company?

Would you rather

hold your wealth in gold and silver,

or in an electronic credit entry in the banking sector's intranet?

Yet the paper money heart keeps on beating. These radical swings - as in the current fanciful belief that the dollar is recovering because the euro is weakening - only shows the irrationality of the system.

All currencies are now Fiat. To say that one in doing better because another is doing worse is like the two monkeys fighting to climb on top of one another as they both hurtle in free fall towards the earth.

Paper money and banking bits were designed to be used as representatives of the underlying object wherein real worth lies.

The world has become confused and believes the representatives to be the source of value.

They are fearful, and are selling the objects of value to acquire the representatives.

This will work for as long as individuals and govermments are willing to accept the representative, and not ask 'what does this form of payment actually represent?'.

Once fiat is understood clearly, paper wealth will disappear like water on the boil.

Until then we will continue to see bad news turned into good news using conclusions like this one:

"Not surprisingly, the dollar is stronger and weighing on the commodity complex at large," Meir said. "With the rest of the world now joining the U.S. in slowing down, the prospects for holding the dollar have brightened considerably."