In the latest Keiser Report, Max discusses the four horsemen of the bondpoclypse riding into town bringing with them the reversal of multi-decades long trends and as pipe swipers steal toilets and as supermarkets hit the limits of cost-cutting, the population confronts the high cost of backsliding trends. In the second half of the show, Max Keiser talks to former energy regulator, Chris Cook, about how we move from dollar diplomacy to gas diplomacy and a world where energy as the modern water hole where you don’t have to kill each other and a natural gas backed currency becomes a new global reserve currency in a post-dollar world. [Read more...]
Competitive currency devaluations are in effect a continuation of currency debasement. Debasement is simply the devaluing of one’s currency or money. In ancient and medieval history it used to be done through the clipping of gold and silver coins.
Today it is done through excessive money creation through the printing of, and indeed the electronic creations of billions and billions of dollars, pounds, euros and other fiat currencies. Indeed, today central bankers are creating billions and billions of electronic money simply by pressing a few buttons on a computer.
Currency wars are set to deepen as most industrial nations in the western world are close to insolvent and look on the verge of recessions – potentially deep ones.
The U.S. will never be able to pay its debts back and so it will attempt to inflate them away through currency devaluation. This poses risks to the global reserve currency status of the dollar – especially as the world moves to a multi polar world where India, Russia, Brazil and China exert their increasing economic and political power.