I believe we saw a grand display of smoke and mirrors from the People's Bank of China today as they devalued their currency, causing the rest of the word to feel as if it had been sucker-punched.

Forget gold backing for the moment, but make no mistake, this has everything to do with China's bid to join IMF's creation of a basket of currencies to compete with the dollar, an event which may be in the news within a week, or so.

If it happens, the questions will not be over the fallout from China's revaluation of their currency, but what will be future of the dollar? Gold backing may come later, perhaps after the dollar has already fallen out of bed.

Got gold?

VP