OK… I’ve read the entirety of the article now. The writer labors under generally accepted assumptions based on legend. A run up in the stock market does not necessarily mean the market expects a recovery. If people expect hyper inflation as most do, the stock market would levitate. As a glaring example of what hyperinflation does, look at Zimbabwe 2002/2005. The other reason the stock market can levitate is if banks have excess reserves but lending has, for the first time since this record has been kept, fallen below zero – which is pretty much the case now.
The writer also contends gold is an inflation hedge. Again; not an accurate assertion. Since 1980 as measured by credit and money creation, we’ve had some of the most phenomenal inflation rates in the history of the world and yet gold lost ground on a relative basis. What is a more accurate observation is that gold is the preferred investment at times of credit stress. The difference between a recession and a depression is that in the first instance the stock market and/or the economy may weaken for a time. A depression however, usually happens when the credit markets are impaired.
Regarding the Euro, yet again, I refer you to page 3 of the charts I maintain at the above link. There you can see what the Euro is doing when measured in terms of gold.
Floating exchange rates are inherently and by necessity based on relative value. Thus any financial value must be looked at in terms of the value of some other asset or commodity.
That said, the article does make a valid point. There is a lot of confusion. Once again. You will be surprised at the answers you get when you ask people about our monetary system. Just for kicks and a laugh, ask ten people you know if they know what our monetary system is. Make sure you also ask your bank manager or any other finance professional.