The Money War
Presently, nations are devaluing their money. Why are they doing this? The answer is that if they don’t devalue their currency, their exports will grow too expensive and unemployment will rise. But devaluing a currency means people suffer because a weak currency causes inflation, which makes life more expensive.
So, the choice is do you want a job or do you want inflation? What a great choice.
a real-life example of how the war of money is good for a few people—but only if you understand the war of money.
The Wall Street Journal October 4, 2010 headline reads: “Central Banks Open Spigot”. This means the central banks of the world are printing money at high speed. The talks are over. Again, this means life is becoming more expensive for people. Savings are being devalued.
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The leaders of the world are calling for a currency pact to stop this money war. But I believe a currency pact will never happen. Currency pacts have been tried before. In 1985, there was the Plaza Accord. At this meeting, world leaders tried to fix and stabilize exchange rates. The moment the government leaders set phony exchange rates, the independent foreign exchange traders (FX), swooped in and punished the foolish government leaders and their phony exchange rates.
If our new leaders attempt a similar Plaza Accord, the FX traders, who owe no allegiance to any government, will once again punish government leaders for their foolishness. In other words, the war of money is going on between countries as well as independent FX traders throughout the world. I’m not a FX trader, but it’s a great time to be one. Fortunes will be made off of foolish government leaders. Years ago, George Soros made a billion dollars betting against the idiots who ran the Bank of England. Today, another billion dollar, pound, euro, or yen pounding is on the horizon.
The problem is that the losers in this battle of banks and FX traders are the average citizens who know nothing about the world of money or the money war. In the next few years, if their leaders lose, these average citizens will be earning less, paying more in taxes, and paying higher prices as inflation seeps into their economy. In the mean time, the financially educated will do better, make more money, and enjoy a better life.
So, the choice is do you want a job or do you want inflation? What a great choice.
a real-life example of how the war of money is good for a few people—but only if you understand the war of money.
The Wall Street Journal October 4, 2010 headline reads: “Central Banks Open Spigot”. This means the central banks of the world are printing money at high speed. The talks are over. Again, this means life is becoming more expensive for people. Savings are being devalued.
-----------------------
The leaders of the world are calling for a currency pact to stop this money war. But I believe a currency pact will never happen. Currency pacts have been tried before. In 1985, there was the Plaza Accord. At this meeting, world leaders tried to fix and stabilize exchange rates. The moment the government leaders set phony exchange rates, the independent foreign exchange traders (FX), swooped in and punished the foolish government leaders and their phony exchange rates.
If our new leaders attempt a similar Plaza Accord, the FX traders, who owe no allegiance to any government, will once again punish government leaders for their foolishness. In other words, the war of money is going on between countries as well as independent FX traders throughout the world. I’m not a FX trader, but it’s a great time to be one. Fortunes will be made off of foolish government leaders. Years ago, George Soros made a billion dollars betting against the idiots who ran the Bank of England. Today, another billion dollar, pound, euro, or yen pounding is on the horizon.
The problem is that the losers in this battle of banks and FX traders are the average citizens who know nothing about the world of money or the money war. In the next few years, if their leaders lose, these average citizens will be earning less, paying more in taxes, and paying higher prices as inflation seeps into their economy. In the mean time, the financially educated will do better, make more money, and enjoy a better life.
