We are still in a balance sheet recession; we’re also in a world characterized by a currency war. Every nation wants a cheap currency to help their exports. How do you achieve profits in this kind of environment? You buy the strongest currency, which today is the US dollar. It’s obvious by now that a new currency is needed, it would be the central banks that would develop a new currency. You can be sure that the central banks will do whatever they have to to stay in command. The new currency will be a complex of three or four leading currencies, plus gold. In the new currency gold will be the dominant factor.
The world is still held in the grip of persistent deflation. Central banks will not tolerate deflation and to fight deflation, they are attempting to create inflation through quantitative easing.
In the meantime the dollar has exploded on the ... Log in or subscribe to continue reading.