By Graham Summers, MBA
As I discussed on Monday, the Nice Foreign money Wars have begun.
Japan is about to intervene instantly of their foreign money markets. And why wouldn’t they… Japan imports most of its vitality and meals… and its foreign money is at a 24 yr LOW because of inflation (in addition to differentials between its financial coverage and that of the U.S. and E.U.).
In easy phrases, one of many MAJOR currencies of the world is now buying and selling like an rising market foreign money.
The Euro isn’t far behind both. It’s at a 20-year low. Issues are so uncontrolled there that the ECB simply raised charges by essentially the most in historical past: a 0.75% fee hike. This barely made a blip within the Euro’s chart because it continues to break down.
And guess what… all these foreign money interventions are inevitably going to lead to central banks printing extra money.
In any case, that’s all they can do. They’ll’t print oil, or employees, or any of the opposite issues that the economic system wants.
Which implies… inflation is just going to worsen.
