The irony. Apparently CNBC’s ratings have fallen so far off the cliff (due to alternative financial blogs such as Zerohedge and SD) that they have been forced to resort to truthful financial reporting.
The Central Banker/ sell-side propaganda arm known as CNBC has released an article warning investors that fiat currencies are headed for a collapse due to continued and escalating devaluation.
Shockingly, CNBC even points out in the article that “Every single fiat currency in history has collapsed, this time will be no different.”
With the typically MOPE-filled CNBC releasing articles discussing the inevitability of the collapse of global fiat currencies and a re-linking to gold, can the final devaluation of the dollar and its fiat cousins be far off?
As the investment world eagerly awaits more stimulus, a debate on a previously unthinkable topic has started to emerge – can fiat currencies survive round after round of debasement?
Some heavy hitters say the answer is no.
A fiat currency derives its worth from the issuing government – it is not fixed in value to any objective standard. That means central banks can print as much money as they want. If an economy is struggling, injecting more notes into the system juices activity but lowers the value of the currency in question.
Mark Mobius, Executive Chairman of Templeton Emerging Markets Group, says investors will soon start to demand fiat currencies be backed by gold or other hard assets.