Currency wars are back

Daniel Lacalle

photo of gold bars and $100 bills“As such, it is no wonder that so many governments, banks and economists globally are telling the Biden administration to print dollars to eternity, forget about limits to monetary policy and follow Argentina and Venezuela down the ‘printing money for the people fallacy.’ Their ultimate objective is the destruction of the US Dollar as world reserve currency and the end of the United States as a leader in capital attraction.”

USAGOLD note: Most commentators concentrate on the benefits or dangers of printing money for the domestic economy. As indicated in the snippet above, Lacalle takes a different tack focusing instead on countries taking aim at the dollar’s status as the world’s reserve currency. (See details at the link.) “A currency war,” he concludes, “is not about who wins, but who loses the most. And if countries embark on an assault on their citizens’ wealth via devaluation, the message to the world is only one: buy true reserve of value assets, like gold or silver, and hide.”

Repost from 1-27-2021

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