The world’s richest economies shrank for the first time in nearly four years in the final quarter of 2012, the Organisation for Economic Cooperation said on Tuesday, as the eurozone crisis continued to drag on global growth.
A Currency War Has Broken Out And Is Intensifying: Japan Will Keep Printing Until Nikkei Hits 13,000, The Fed Is Buying $85 Billion A Month Until Unemployment Hits 6.5%, ECB Launched Unlimited Bond Buying To Cap Governments’ Borrowing Costs, Venezuela And Egypt To Devalue Their Currency… Banks: G20 Must Act To Avert Currency War!!
While the G-20 and the G-7 haggle among each other, all (with perhaps the exception of France) desperate to make it seem that Japan’s recent currency manipulation is not really manipulation, and that the plunge in the Yen was an indirect, “unexpected” consequence of BOJ monetary policy (when in reality asRichard Koo explained it is merely a ploy to avoid the spotlight falling on each and every other G-7/20 member, all of which are engaged in the same type of currency wars which eventually will all morph into trade wars), Europe’s energy powerhouse Norway quietly entered into the war. From Bloomberg: “Norges Bank is ready to cut interest rates further to counter krone gains that interfere with the inflation target, Governor Oeystein Olsen said. “If it gets too strong over time, leading to inflation that’s too low, we will act,” Olsen said yesterday in an interview at his office in Oslo.
The pound took a fresh beating yesterday as concerns of currency wars and debasement of sterling led to another sell-off and experts said the currency was at risk of a “large-scale devaluation”.
Sterling trails only Japan’s yen as the worst performer against a basket of international currencies this year as a 4.5 per cent decline fuels import prices and pushes up the cost of food, insurance and other necessities for hundreds of thousands of households.
As central banks tolerate higher levels of inflation, the pound is set to weaken further across the board particularly against safe haven gold.
We’re Witnessing An Unprecedented Moment Where Countries Lined Up Demand Return of Their Golds Reserves While Central Banks Around The World Are Anticipating Unlimited Money Printing
While Western central banks have frittered away their gold, China is quietly building up its reserves.
Are Central Banks Overstating their Gold Holdings?
Romania has demanded for many years that Russia return its gold.
Last year, Venezuela demanded the return of 90 tons of gold from the Bank of England.
The German high court recently ruled that Germany must audit its gold reserves held in foreign countries such as the U.S., England and France. And German inspectors will actually travel to the New York Federal Reserve Bank’s gold depository and the Bank of England to inspect their gold.
Germany will also repatriate 150 tons of gold in order to test it for purity.
KWN: Today James Turk told King World News that “… central planners have hijacked the world’s monetary system,” and they are about to completely lose control. Here is what Turk had to say:“After a week like last week, Eric, I always ask myself what if anything am I missing? So I spent a lot of time this weekend going through the basics, and I have concluded that the premise upon which I have been recommending the ongoing accumulation of gold and silver still holds.”
James Turk continues:
“Currencies are being mismanaged, and gold and silver are the best protections against the erosion of the purchasing power of national currencies. Consider some of the things that happened last week. Most commodities resisted the selling seen in the precious metals. Crude oil was little changed on the week and near multi-month highs.
Eric Sprott manages $10 billion, and he’s worried about the global financial system. He says, “There is this huge chaos going on in the financial business which I think we all sense. They are using desperate measures here to hold it together. . . . at some point it blows.
There’s no doubt about it.” Sprott says the price of gold and silver are being suppressed because, “It’s the canary in the coal mine.” Rising prices in precious metals, according to Sprott, would tell people, “Central bank policies are ridiculous and irresponsible, and people would realize that with the price of gold and silver going up.” When it comes to silver, Sprott says, “People keep buying at a rate to 50 to 1 to gold.” As far as gold is concerned, Sprott contends, “Physical demand for gold is out of line with supply. How can all these new people come into this market when there has been no increase in supply . . . for the last 12 years?” Sprott’s analysis shows central banks are selling to make up for the shortfall and opines, “I would hate to think what happens when we all find out there is no gold in the Treasury.” Join Greg Hunter as he goes One-on-One with Eric Sprott….