Metals, Dollars and Euros

derryb

Precious Metals Benefit From a Shift in Currencies:

"US and EU are going to debase their currencies, each in hope of gaining a competitive advantage in exports and devaluing its own debt. Who will win this race? Whether it will be the US or EU that will manage to "solve" more problems by printing money, we know that clear winners in the long run will be gold and silver investors and charts appear to confirm that."


The recent moves by the ECB and Fed were hardly confidence-inspiring. Rather, they were a sign of Panic!:

"Things are deteriorating rapidly, more austerity is coming to Spain and Italy. France is hiking taxes and fees like mad, as well as considering plans to prohibit businesses from firing employees, and economists are expecting or hoping interest rate cuts will inspire confidence!"

Julio

I have no doubts that the path the world is on will be good for the metals. I also have no doubts this path will result in inflation. 1+1=2. Take care. jws

derryb

And now the Brazilian Real.

Let the currency wars begin:

Brazil to keep its currency devalued and competitive

jmski52

plans to prohibit businesses from firing employees

Yeah, that'll really help. I swear, you really have to question the intelligence of the government decision-makers who think that businesses are going to stick around with ideas like that.

jmski52

I have a fabulous idea. Instead of trying to make everything as cheaper and cheaper crap to pawn off on unsuspecting buyers, why not build something with a little better quality and charge more for it? Who knows? Maybe there would even be a market for something that's not made of metallized plastic from China.

derryb

<< <i>I have a fabulous idea. Instead of trying to make everything as cheaper and cheaper crap to pawn off on unsuspecting buyers, why not build something with a little better quality and charge more for it? Who knows? Maybe there would even be a market for something that's not made of metallized plastic from China. >>


Mercedes and Harley Davidson beat you to it but keep those ideas coming.

jmski52

I would say that this continuous cycle of currency devaluations constitutes a "currency war". When was the last currency war, and don't currency wars usually end up in shooting wars? Not good, imo.

OnlyGoldIsMoney

<< <i>plans to prohibit businesses from firing employees

Yeah, that'll really help. I swear, you really have to question the intelligence of the government decision-makers who think that businesses are going to stick around with ideas like that. >>




Agreed. A truly excellent way to induce mass layoffs before the law (decree?) takes effect.

I wonder if business owners will be expected to keep paying wages and benefits after they shut down their operations.

Spooly

Good book


Jim Rickards - Currency Wars: The Making of the Next Global Crisis

ricko

Not sure where this world financial crisis will end, however, it seems more and more likely that metals and goods will, at some point, become currency. Cheers, RickO