ďWizard's First Rule: people are stupid.Ē

ďPeople are stupid; given proper motivation, almost anyone will believe almost anything. Because people are stupid, they will believe a lie because they want to believe it's true, or because they are afraid it might be true. People's heads are full of knowledge, facts, and beliefs, and most of it is false, yet they think it all true. People are stupid; they can only rarely tell the difference between a lie and the truth, and yet they are confident they can, and so are all the easier to fool.Ē

Does this not aptly describe the belief that the dollar will lose its reserve status, will collapse relative to other paper currencies, and is facing imminent hyperinflation with a skyrocketing gold price?

Both motivators apply here. The gold community wants to believe it, because that means that gold will go up. To $10,000 or as that speaker at FreedomFest 2017 confidently predicted: $65,000. Everyone with a few gold Eagles in his sock drawer will be rich. And those who put a few hundred thousand bucks into gold will be Seriously Rich. A real Fat Cat! Like with Ferraris, and chauffeur-driven Rolls Royces, and everything.

Never mind that if the dollar collapses, $65,000 wonít be worth much. This will be the dollar going down, not gold going up. Never mind that in a world where everyone is impoverished to that degree, you would not dare to drive your Ferrari even if you owned one. Tune in to the chaos going on in Caracas, Venezuela for a picture of this problem.

Never mind that the other currencies are dollar-derivatives and would not survive the collapse of the currency from which they derive, if they even last that long. Never mind that the quantity theory of money, used to predict this hyperinflation, is wrong and that we have the opposite of hyperinflation now. Never mind that the other central banks are abusing their currencies worse than the Fed abuses the dollar.

Many peopleís heads are full of this stuff, yet they think itís all true.

The other motivator is fear. Some of the people who want collapse to be true, also fear it. And many more fear it to be true. The fear gives reality to the idea.

Our view, at Monetary Metals, is that the dollar will collapseólast. And that there are several good kicks left in that can. There is no imminent threat of collapse of the dollar. The Swiss franc, as we have written about for several weeks, is much closer to collapse. And even that may not be imminent.

The world has not experienced this disease before. No one knows how long it takes to progress through the corpus economic. We are only studying the numerous pathologies one at a time so far. And we invite others to join the field of scientific inquiry. You need only some passion, some time, and a willingness to discard all that stuff which isnít so, like quantity theory of money.