Let’s look at what will drive the markets and commodities moving forward
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Of course, all the worlds currencies cannot devalue together since that is mathematically impossible under a relative weighting system. One must always be stronger while another weakens. But I knew what you were saying anyways. By default, if devaluation is the end result then all currencies can fall versus hard assets so what is implicit in the conversation is that gold and silver (as two examples) will be beneficiaries of currencies in decline. In fact, I believe a number of currencies will become utterly worthless due to the defaults of those nations and that is a bit more severe than just a relative devaluation. Owning a mine of such a country can turn out to be of more value than all the money it might print (if they don’t seize it in a crisis)…..note to self….be careful which country assets you own.
They can, have, and do, devalue together. This is why all major currencies have plunged when priced in gold and virtually everything else.
By destroying their respective currencies simultaneously, relative stability between currencies is achieved while each loses real-world purchasing power.
The USDX would be at 20 or 30 right now if the other major currencies didn’t also lose similar purchasing power.
I wrote “all currencies can fall versus hard assets”. But that is NOT the same as all currencies falling at once. You wrote….”They can, have, and do, devalue together.”
Give an example if we differ on what is being discussed.
What I like to do to beat the big banks is take advantage of their $150 plus cash credit card offers or new checking acct offers where if you spend $500 in the first 3 months they give you a nice cash bonus. What I then do is buy physical silver with their free money and of course payoff the card right away so the banks do not earn any interest income off of me. Now if 20 million or so Americans did the same we could really squeeze the physical silver market. Work smarter not harder!
Interesting comments.
Cory, there’s indeed a place where “countries” sit at a big roundtable and discuss about each other’s printing plans… It’s called the BIS – Bank of Int’al Settlements.
Recommend the book “Tower of Basel” for whoever hasn’t read it yet.
Best to all,
LPG