Euro Slides After ECB Signals Potential For Currency Wars

Link As the Biden administration shows no signs of slowing the money-printing (in fact quiet the opposite), it would appear, as we noted previously, that the rest of the world is not enjoying the concomitant dollar depreciation and is starting to fight back (with words for now). With the euro recently soaring back near 6 year highs, ECB Governing Council member Klaas Knot told Bloomberg this morning that the Central Bank has the necessary tools, including interest-rate cuts, to prevent any further strengthening of the euro undermining inflation.

“That is something we of course monitor very, very carefully,” Knot, who heads the Dutch central bank, said in a Bloomberg TV interview on Wednesday. It’s one of the factors, not the exclusive factor, but one of the factors we take into account when arriving at our assessment of where inflation is going to go.”

Out of how many factors? Like ... three. LMAO

Pay attention now ...

If the world gets into a currency war, with the assault on wages and savings that devaluation entails, no one wins. A currency war is a war against citizens, their salaries and their savings, to benefit inefficient and indebted sectors. A currency war would devastate the purchasing power of salaries and suppress investment and consumption decisions. When governments attack the currency, the economic agents’ reaction is not to invest and consume more, but a generalized slump in spending and capital allocation. If a country enters a currency war, it disproportionately hurts its own citizens. If China, the Eurozone, Russia and the US do it, it will likely lead to a severe global crisis. A currency war is not about who wins, but who loses the most. And if countries embark on an assault on their citizens’ wealth via devaluation the message to the world is only one: buy true reserve of value assets, like gold and silver and hide.

a reply to: Snarl

Great thread, thanks for posting this Snarl.

My own contributions from a historical & economic perspective:

A race to the bottom (Beggar-thy-neighbor policies): www.investopedia.com...

and Triffin's Dilemma help illustrate some of these dynamics at play: www.investopedia.com...

originally posted by: FamCore
a reply to: Snarl

Great thread, thanks for posting this Snarl.

My own contributions from a historical & economic perspective:

A race to the bottom (Beggar-thy-neighbor policies): www.investopedia.com...

and Triffin's Dilemma help illustrate some of these dynamics at play: www.investopedia.com...

You can find out a lot of things, because though it may be the root of all evil, following the rainbow leads to a pot o'gold.

I'm not a gambling man, but I'd wager on Bye-Den: tanking the dollar within two years; turning us over to the World's Central Bank and their new cryptocurrency (one that actually spends wherever you go); resigning; and handing the reins over to Camel-Allah.

Tanking the dollar may come a whole lot sooner than many expect.

Looks like Venezuelan like inflation in the US
1 million dollars for a gallon of gas

originally posted by: Raggedyman
Looks like Venezuelan like inflation in the US
1 million dollars for a gallon of gas

Yeah ... I don't expect any support from any country.

Know what I would get behind? Giving up the politicians (and their families) who were stewards of the sinking ship. It was their fiscal mismanagement after all.

Well, Biden will introduce a new world currency to overtake all other currencies. It will be called The New Yuan.

a reply to: Snarl

I have a question, that I hope you would answer for me as I know nothing. What does it mean at the end list of true value gold, silver, ok but what are hides? Unless I really read it wrong and it means to take gold and silver then hide.

a reply to: justdust

If you own real physical precious metals, don't even use a safety deposit box at the bank, you need to hide it somewhere only you know about.

Once they take your guns, precious metals are next and you aren't getting a true value when they make you turn it in.

Also, it may be one of the few ways to afford staples that have become black market items. Simple gold and silver jewelry is good along with old worn silver dimes, nickles and copper pennies (1981 or earlier).