“Gold is rising because the post-Breton Woods exchange rate system doesn’t work,” Eric Roseman, our colleague over at the Commodity Trend Alert, matter-of-factly declares. “More than ever, governments are piling up debts, as a result of bailing-out their respective banking systems. There is a price to pay for this profligate spending. And gold sniffs trouble.”

“Gold is rising because the post-Breton Woods exchange rate system doesn’t work,” Eric Roseman, our colleague over at the Commodity Trend Alert, matter-of-factly declares. “More than ever, governments are piling up debts, as a result of bailing-out their respective banking systems. There is a price to pay for this profligate spending. And gold sniffs trouble.”

The UK Telegraph recently quoted at length Cheng Siwei, former vice chairman of the Standing Committee of the Chinese Communist Party. He explained how Beijing is dismayed by the “credit easing” coming out of the Federal Reserve.

Clowns to the left of us… Jokers to the right… The Simpleton’s Analysis: Consumers cut back. The economy sank.

It is amazing how many things have NOT happened.

At least something good has come out of the economic crisis; it blew off the purple robes that clothed economists and exposed their naked flanks. Still, they don’t deserve the beating they’re getting in the press – with snide remarks and sarcastic comments; they deserve better. A beating with sticks!

Today’s Notes reads more like a John le Carre novel than an investment newsletter. But bear with us. It tracks one of the most fascinating news stories you’ve never heard of.  The news reports are maddeningly sketchy. And the mainstream media is doing a damn good job of not reporting the story.

Dow, Oil and Gold all Doing Well.

World stocks edge up… Crude oil falls, trades just above $51 a barrel… U.S. dollar firmer, U.S. bonds rise

“When I use a word” said Humpty Dumpty in Lewis Carroll’s “Through the Looking-Glass,” “it means just what I choose it to mean, neither more nor less.” It has always been the ambition of Wall Street to bring its financial statements under a similar type of discipline.