Global Thermonuclear Devaluation
Submitted by Mark Grant, author of Out of the Box,
“Now, witness the power of this fully operational battle station.”
We are all embarked upon a grand new adventure. It just hasn't been announced yet. It will never be officially announced but we will all get to play this brand new game in any event. Originally I and others had provided the name, "Currency Wars," to our new game but recent comments and subtle indications have invalidated the title.
The new title is, "Global Thermonuclear Devaluation."
Japan leads off in first position. It will devalue against the Euro and the Dollar in a significant fashion. All approved by the G-7 of course. Then Europe has begun and will continue the same process which will be followed by America. It is the second in the grand schemes with the first great foray being entitled "Quantitative Easing." One game got old, the next one got sold. You have to know when to hold or fold them.
This new plan has been devised by the hedgehogs of Davos. Devalue all of the currencies in the world against goods and services and pay a far smaller price for what is desired and needed. The scheme is not exactly friendly to commodities either. Never in the history of the world have the economies been so connected or the central banks acting in such concert to be able to pull something like this off but the bet has been made. The money is on the table.
“Only at the end do you realize the power of the Dark Side.”
The outward appearance will be a "Currency Wars" game but that is just a distraction. There are other motives afoot here and deviousness and distraction are always part of great political maneuvers. This quite complex multi-tiered move is a methodology to systematically reduce the value of all of the major currencies on the planet. In the currency markets all values are relative but by a coordinated effort each currency may be reduced to new lower valuations by one following the other down in price as coordinated by the Pied Pipers of Davos. Hamelin has been abandoned.
The massive selling of gold may also figure into this equation. Gold is the alternative currency afterall so that as its price declines then the national currencies and the global currency (gold) all are valued at new and lower levels by this systemic central bank effort. The word "manipulation" does not even begin to cover this ground. There are also a wide variety of consequences here.
If Quantitative Easing is soon to be curtailed then the effects of higher bond yields and a weaker equity market may be partially defused by lower currency levels. The absolute and relative value of a currency or all of the major currencies on the planet may also have a devaluation impact on commodities so that oil, copper and other basic materials may plunge in price as currencies are lowered globally. It is a dangerous game though and never before tried so that the ugly head of "unintended consequences" could play out in ways that no one fully appreciates or understands.
“Told you I did. Reckless is he. Now, matters are worse.”
-Obi Wan Kenobi
Devaluation by fiat may also lead to Deflation by fiat and then we may well all find ourselves on the Dark Side.