Currency Wars – a race to the bottom
With the global economy continuing to falter (the IMF recently downgrading growth projections yet again) and fears of prolonged deflation we are seeing Governments around the world extend the easy money game and hence devalue their currency to make it more globally competitive. The Euro last week reduced their rate to an incredible 0.25%, the US and Japan keep printing money hand over fist, Australia talks down its dollar, etc, etc. We are in an unprecedented time of dollar devaluation. Whilst tackling deflation, such practices can lead to sudden and severe hyperinflation. Gold and silver are real money in a world racing to see who can devalue their paper stuff the most….