Gold marches higher: But no sign of panic. Yet.

From the chart above you can see gold making new all time dollar highs - though the inflation adjusted price is still sell below the 1980 peak of about $2350.

Who cares? The dollar price is irrelevant. As long as we're talking about a "dollar price" we're conceding the obvious fact that everything of value is currently priced in dollars.

This is why there is no panic. There is no panic in the US markets. There is no panic in the commodity markets. There is no panic in the gold market.

The US debt is out of control. The world debt is out of control. The US government is totally out of control. Narcissistic Dull Normals of brazen appetites and situational ethics have seized control of all facets of world government.

Nobody anywhere is even looking for a solution to the intractable problems of a world economy built on a mountain of debt.

Still - No Panic.

Why? Because the Banks are firmly in control. They control the issue and flow of dollars throughout the world. They control the governments that run on this flow of dollars. They control the flow of dollars to the armies that re-enforce the power of the US regime.

You and I can rail all we want against the monolithic power of the US Banking System. It is precisely that power that has led to this crisis. And it is also that power that is currently holding a dysfunctional system together. It is that power that is preventing panic.

Because it is easy to have faith in Monolithic Power - no matter how self serving and destructive it may be. It is difficult to rock that faith no matter what the conditions are on the ground. Greece is rocked because they lack that power. Italy, Portugal, Spain, Ireland are all following.

There is panic developing in all those countries because they rely on the US Banking system which funds the IMF - that controls their fate. And they are beginning to realize that the banks will impose whatever controls they want regardless of the fate of their countries in order to keep the US banks strong.

But the US banks can not survive if the US goes down the same road. Yet the banks have no solution - other than to manage the crisis so that the end game is a slow steady deterioration of the lifestyle and standard of living that is barely perceptible in the minute to minute sensibility that dominates the western mentality.

Let's hope they prevail.

Keep the faith. Because as long as you do there will be no panic.