Is there a race to see who will devalue their currency the most ?

pmcollectour

Is this a strategy currently being used by governments and banks, or is it just happening due to debt and QE's happening all
around the world ? I don't understand the politics of it all, but it appears that everyone
is debasing their currency.

I don't believe in this theory, but if all currencies go in the toilet, and you take into consideration all the debt, GDP, and we somehow
turned to GOLD as the primary store of wealth, then we would see GOLD at $100,000 an ounce, and we may see silver way
up there too if that is recognized as a store of wealth.

I don't buy into this way of thinking, and who knows what tomorrow brings, but my main question is are all the countries
in the world trying to kill the value of their currency for some reason ? Or is it just happening naturally due to all the bad policies ? Thanks.

cohodk

All the countries are trying to kill the US dollar since it is the reserve currency which gives the illusion of inflation to a world deflating due to excessive debt.

mhammerman

I don't see how you can debase a currency that has no base. Fiat is just paper issued by the government that merchants will exchange for goods. That exchange is somewhat of a vote of confidence in the government but it is not based in anything that has real value such as gold or silver; it used to be but now, it's just paper. When that confidence is gone then the paper will no longer be accepted by merchants or international exchanges and people will revert to barter or surrogate currencies or in the case of the early US, they will use foreign coins or private bank notes that are based on some type of hard asset.

Placid

Inflation or decreasing the value of ones currency is a way to get out of debt or in other words printing what it takes to pay the debts.

The US could print 20 one trillion dollar bills and use them to pay all of the national debt off.

If I could print my own money I could never be late in paying my mortgage unless there is a limit put on how much money I were allowed to print.

OnlyGoldIsMoney

Yes - I believe the Swiss are in dead last.

PerryHall

<< <i>Yes - I believe the Swiss are in dead last. >>



Are we in first place?

Baley

The US could print 20 one trillion dollar bills and use them to pay all of the national debt off.

But nobody would be able to break it for you.

"Anyone got change for a trillion?"

DrBuster

We're seeing the revaluation of PMs via the fiat devalue, so when the alien and chinese overlords take over next December, only the shiniest of the shiny can pitch for safe-haven.

jmski52

how you can debase a currency that has no base

Thought for the day.

derryb

It's like an ebay buy it now listing - everyone wants to be the lowest priced seller, but nobody likes lowering their price.