We have obviously crossed the threshold folks, things are falling apart by the day and the game of Kick the Can has at long last gone as far as it can. The rest of the World no longer has a choice, the United States is no longer the big bully on the playground who won WWII and their fingers are no longer so firmly around the throat of the planet. [...]
U.S. Federal Reserve Chairman Ben Bernanke said a little currency appreciation in the developing world is not a bad thing.
Speaking at the International Monetary Fund meeting in Tokyo this weekend, Bernanke urged Third World nations to allow their currency to appreciate as a means of actually preventing inflation.
“The perceived benefits of currency management inevitably come with costs, including reduced monetary independence and the consequent susceptibility to imported inflation,” Bernanke said.
In 1971 President Nixon closed the window that allowed US Dollars to be sold for gold owned by the US. Just before that, the price of gold was $35 an ounce. Since then gold has been called a ‘barbarous relic’, a term used in an earlier era by Keynes, the famous economist.
From that time on, the world’s currencies stood merely on the confidence their governments engendered and the control they [...]
From Pragmatic Capitalism:
The Economist is out with an updated version of their Big Mac index showing the world’s currencies price based on the world famous McDonald’s sandwich. The list of most expensive remains loaded with Europe’s sovereign nations which have no doubt been impacted by the Eurozone debt crisis. Emerging markets remain on the other end of the spectrum (via The Economist):
“THE ECONOMIST’s Big Mac index is based on the [...]
by Chris Martenson
Turd Ferguson is a funny guy.
But there’s one thing this irreverent, acerbically goofball forecaster is stone-cold serious about: the need to build personal exposure to the precious metals.
For him, it’s a straightforward mathematical certainty that the global economy must collapse under the weight of the excessive (and exponentially compounding) credit amassed over the past several decades. The debt is simply too large to be serviced.
As a growing number [...]
Probably the most interesting part of the previously discussed 174-page World Bank report on the future of world currencies, is, ironically, the part that deals with the past. In its discussion of why “Historically, one national currency has played a global role—or at most, a few national currencies”, the WB analyzes the history of the “reserve” or dominant currency from ancient times, through today. [...]
Australian and Canadian dollars close to record high against US dollar:
Euro close to record high against US dollar:
US dollar plummets close to record low against world currencies. The chart goes back 40 years and it’s at the lowest level:
What this means is the banks are going to be swamped with more foreclosures. This time not just low end homes but those which were originally in the hundreds of thousands of dollars (and sometimes millions). We already know many banks are still in trouble. In the auto industry, the government propaganda machine is telling the peasents (that’s us) that the money they were given, is being paid back, It [...]