The fact that the dollar is stable even against the background of rising prices (black line, right chart), signals a decrease in the value of fiat currencies relative to

Gold. With alarming levels of government debt and deficits everywhere, investors are looking for safe havens. The continued rise in gold prices – amid declining market expectations of a Fed rate cut and dollar stability – is highly unusual. One possible explanation is that we are witnessing a crisis of confidence in fiat currencies, as fiscal imbalances in many countries encourage governments to inflate debt.

(And Russia, with its growing budget deficit and public debt, is moving in a global direction)