Below are charts showing gold priced in different currencies. If you look at gold as the constant form of money, and the different currencies as a thermometer of how well or bad the economy in each different country, or basket of countries, are doing.
So, this gives you a clear picture of how the currency wars are unfolding and how in reality this is showing how the currencies are depreciating in value at a quick rate. They are all tied to the $USD, which since August 15th, 1971, thanks to President Nixon, is no longer backed by gold..
As Egon von Greyerz says, “Of course, nobody sees hyperinflation as a credible outcome of todays’s low growth environment. But hyperinflation is a currency event and it will come as a result of all major currencies finishing the move that started with the creation of the Fed in 1913. Since then, all currencies have fallen 97-99% in real terms. So there is only 1-3% to go to reach zero. But the problem is that they won’t just fall 1-3% but 100% from today. This will be achieved by massive money printing in an attempt to save a debt infested global economy.
So why will central banks now succeed with creating inflation when they have failed for so long? They have for some time used their two major tools to create inflation by printing money and lowering interest rates to zero or negative. But why do they want inflation since it destroys the value of money? For example, an inflation rate of an average 3% halves the value of money in 24 years. What is good about that?
The simple answer is that inflationary growth creates the impression of real growth. Inflation gives the illusion that people are better off whilst it instead makes them poorer and destroys the value of their savings.”
This is the hidden tax. As long as the government keeps the inflation low, the people won`t riot. Now, the people of the world have had enough.
Let`s have a look at the inflation in Venezuela, could this spread and result in a global currency crisis or is it all good?
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