By Marcus Brooks
As the currency wars heats up more and more people in Europe and America will start to realise that they are getting less bang for their bucks. The fact is that Europe & America totally depend on cheap imports from China, and thus Walmart shoppers will be in for a nasty surprise. According to China Times, “China is fully prepared for a looming currency war should it, though “avoidable,” really happen, said China’s central bank deputy governor Yi Gang late Friday.” We look forward to the female head of the IMF explaining how China is obviously confused and that it is not currency war when one crushes their currency to promote “economic goals.” Of course, that same organization may want to read “Zero Sum for Absolute Idiots” because in this centuryof globalization any attempt to promote demand through debasing your money has no impact when everyone does it. But then again, this is the IMF – the same organization that declared Europe fixed in
This is what the vice govenor of the Peoples Bank of China said:-
Yi, vice governor of the People’s Bank of China, made the comment amid widespread concerns that the world’s major economies would drive down their units to gain a trade advantage through monetary easing policies.
A currency war could be avoided, Yi said, if policymakers in major countries observed the consensus, reached at the recent G20 meeting, that monetary policy should primarily serve as a tool for domestic economy.
G20 members promised that they would not wage a currency war, but none have shown signs of scaling back monetary easing that has injected a flood of cash into global markets. They worry that removing the stimulus will plunge their economies into another recession.
“China is fully prepared,” Yi said. “In terms of both monetary policies and other mechanism arrangement, China will take into full account the quantitative easing policies implemented by central banks of foreign countries.”
In my opinion holding paper fiat currency is a fools game. I’m gold and silver all the way.