The Race to Debase Currencies is Back On: Deficits, Defaults and Downgrades Worldwide Get Ready for Fiat Currencies to Accelerate Devaluation. First Dubai, now Greece. Look for more defaults, downgrades and soaring deficits. Fiat currency devaluation to accelerate. Governments race to debase their currencies to try and ease soaring debt burdens. Well I agree withMeredith Whitney interviewed today on CNBC, the consumer is in TROUBLE and the US is OUT of BULLETS…the only thing left to do is massive CURRENCY DEVALUATION…rates will stay low, unemployment is still increasing….home defaults are increasing and Commercial Real Estate is next….. As the world looks to “reflate” their economies, fiat currencies (dollar, euro etc) are being deliberately devalued by governments worldwide as a way to get out from massive debt burdens that were run up during “credit bubble” and continue at ever higher levels with “stimulus” plans. The US very much wants and needs a weaker dollarand low interest rates as deficits and unemployment continue to soar.Fiat currencies will likely continue to be aggressively devalued over the next decade. Also from Bill Gross: Pimco’s Gross Says Diversify Dollar Holdings Before Central Banks Do and Richard Clarida: Pimco’s Richard Clarida: Central Banks May Substitute Gold for US Treasuries Pimco’s Richard Clarida goes over how a weaker dollar can benefit the the US Related: Gold at $10,000 an ounce? 10 reasons it could happen within the next 12 months… Bernanke, December 7, 2009, Transcript Excerpts: Still See ‘Extended Period’
Race to Debase Currencies Back On: Deficits, Defaults and Downgrades Worldwide; Get Ready for Fiat Currencies to Accelerate Devaluation
Posted by Naveed Arshad on 7:32 AM
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