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Old 12-22-2012, 04:06 PM
Danny B Danny B is offline
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Join Date: Oct 2012
Location: L.A. Ca.
Posts: 4,849
Currency war

Almost all of the central banks are printing like crazy,,,, and crazy it is.
Zimbabwe proved once again that you can't print your way to prosperity.
The FED has admitted that they are taking actions that they would have considered crazy just 10 years ago. They're doing it anyway.
Peter Schiff: The Federal Reserve is Now 100% Committed to the Destruction of the Dollar |

The FED is on their way to printing an additional $ 1.02 trillion this year (2013)
2013 The Final Act | International Forecaster Weekly Bob Chapman The International Forcaster | Economy News | Investing | US Market Information | Gold | Silver | Wall Street Bailouts | Investment Trends | Money Resources | US and Worldwide Politics
Bank of Japan has gone off the deep end with printing.
The European central bank is doing the same.
They're crashing their currencies in unison so that investors won't notice or won't have any place to flee.

The exception is Russia. Russia is now circulating gold and silver coins that are denominated in Rubles.
Central Bank of Russia issues gold and silver legal tender | DGC
This is the equivalent of a thermonuclear attack on Western currencies.
Gresham's Law states that bad currencies will drive good currencies into hiding.
Gresham's law - Wikipedia, the free encyclopedia

Since the Russian coins are stamped with a number, the Russian currency will never lose purchasing power,,, as long as it retains convertibility.
No fiat currency has ever survived for very long. The average lifespan is 30--40 years. The U.S. dollar is 42 years old as a non-convertibility currency.
Theoretically, people will hoard Russian currency to avoid losing "value" from inflation.
The Chinese have taken all those 400 ounce "good delivery bars" and recast them into 0ne kilo bars. It is expected that they will use them for trade rather than hoarding. China is also buying and selling enormous amounts of gold trying to position themselves as the main trader. They are doing the same with oil.

Western bankers are willing to kill the dollar to save the banking system.
It's possible that they have a plan where they will come out OK even after the dollar is destroyed.
I do not believe that they will survive. Banking and credit are, for the most part, just information services. In the information age, that doesn't require a big organization. This huge reduction was coming and the bankers tried to avoid it. They blew credit instruments up to the stratosphere.
OTC-Derivatives extrapolated estimates | Flickr - Photo Sharing!
There is no possibility that the producing economy can support the whole big mess.
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