Currencies gone wild!
Like drunken girls looking for some easy fun, governments around the world have created a new game based on an old theme, "Currency printing gone wild":
The past three years have been dominated by government intervention...
This week In Ireland, a slow steady bleed has turned into a mad dash for cash at Allied Irish Banks as they have had to rely on Central Bank funding as customers withdraw $18 billion, a stunning 17 percent of its deposit base. Without Central Bank funding, there would indeed be outright panic.
Soon after the U.S. TARP program, China rolled out the biggest fiscal stimulus package in the world (relative to GDP) as well as ultra-easy loan programs. This gushed money into asset markets around the world. And despite mounting pressure to revalue its currency, China has continued to hold the yuan down to keep exports flowing and its economic engine running.
Europe stepped in as a buyer of last resort to keep souring European economies alive to see another day. And despite their efforts to stabilize Greece and the rest of the region, they're now working up a plan to plug another leak in the dam ... this time in Ireland. Next up on the agenda are Portugal, Spain then Italy. Shall we print 350 billion Euro's and 300 billion dollars for the IMF to paper those over?
For the past twenty years, Japan fired off one fiscal stimulus after another ... and QE one after another. Plus, acting alone, it directly intervened to weaken the yen.
Meanwhile, Brazil, Korea, Singapore, Thailand, Malaysia, and Indonesia have all intervened in an attempt to weaken their currencies through outright currency market intervention and/or capital controls.
All it is doing is diluting ALL currencies relative to gold. Despite the massive short positions of JPM and HSBC on behalf of the Fed to keep gold down, it has risen over three hundred percent.
With the new outright disdain at fed chairman Ben Bernanke we face a diabolical scene where nations race each other to debase their currencies.
The tide is coming in for miners of precious metals and their is no way to stop it!
Enjoy the ride!
Goldman Pillage and Sack
AI
