WORLD DOLLAR PANIC IMMINENT? There Is A Currency War Raging World-Wide And Masses Close To Realizing Their Money Is Being Destroyed

We’re In a Global Currency War … But What Does It Mean?

There is a currency war raging world-wide.
Japan, Brazil, Peru and countries all over the world are trying to beggar thy neighbor (just as happened during the 1930s) and gain a leg up for their exports by cheapening their currencies.
As the Wall Street Journal writes:

Beggar-thy-neighbor currency devaluations proved ruinous for the global economy in the 1930s. Is the world setting off down the same slippery slope again?
Japan’s decision to intervene in the currency market to drive down the value of the yen blew a hole in the developed world’s united effort to persuade China and other Asian countries to stop artificially holding down their currencies.
If you take a step back, it really is an odd situation. As Joe Weisenthal notes:
Just think for a moment about the screwy times we live in when central banks are trying to hurt their rivals by buying up their rivals’ bonds — essentially lending them money.
Such is the state of things in a world where every country wants to weaken their currencies to boost their own exporters.
And the House has passed legislation saying China is a currency manipulator and has to raise the value of the Yuan.
What does it mean?
American experts say that the Chinese Yuan is undervalued by 25%, which makes Chinese exports artificially competitive. The U.S. Congress is trying to blame China’s undervalued currency for America’s bad economy and unemployment woes.
But the former U.S. trade representative, Susan Schwab, says that – while there’s a very real problem in terms of China artificially keeping the renminbi low – this isn’t the way to solve anything. Schwab calls it “a signal-sending exercise during an election season”. She says that the bill won’t really do anything, even if the Senate passes it and it is signed into law. Schwab says it “makes no sense”, won’t solve any problems, will escalate tensions, and will only divert attention from the real trade problems between the U.S. and China.
Indeed, Schwab warns that other countries might decide that this U.S. bill means that its open season for addressing currency manipulation, and that other countries believe that the U.S. is manipulating our currency. She says there could be a “boomerang effect” from the legislation….
Russia is warning that we are rapidly approaching a global “currency war”
Billionaires such as George Soros and John Paulson have been hoarding massive amounts of gold
Billionaires buying up so much ranch land up in Montana
Germany announced that it will be moving gold from New York and Paris to its own vaults back home?  Is this a sign of a breakdown in trust among global central banks?

The U.S. Mint is on pace to sell more silver eagles during the first month of 2013 than it did during the entire year of 2007
The Japanese Yen Trade Is Exporting Inflation to China

WORLD DOLLAR PANIC IMMINENT? Masses Close To Realizing Their Money Is Being Destroyed

Today 40-year veteran, Robert Fitzwilson, wrote the following piece exclusively for King World News.  Fitzwilson, who is founder of The Portola Group, warns, “When the masses realize that their money is being overtly destroyed in front of their eyes, there will be a panic.  By then, it will be too late.” Below is Fitzwilson’s piece which discusses the approaching end game, and how gold and silver will be the primary beneficiaries.
Below is Fitzwilson’s exclusive piece for KWN:
“Over the millennia, gold and silver have been the critical intermediaries between purchasers and providers of goods and services.  Having a sound standard for economic activity has been a critical factor in the rise of history’s most influential societies.  In our time, nothing seems to generate more heated discourse than the topic of a gold standard…

China sovereign wealth fund may cut US debt holdings

China’s sovereign wealth fund, which has more than US$480 billion in assets, could cut holdings of US Treasury Bonds as they are becoming a less attractive investment, In line with the future US economic recovery, the appeal of US debt is weakening,” Lou said. “From a long-term p…

Currency Wars Are Bullish For Precious Metals Investors

 As nations see Japan’s success in weakening the yen (see discussion), some begin to take notice. Emerging markets nations often attempted to devalue their currencies in the past in order to improve competitiveness. But these days developed economies are doing it as well. This morning the Russians called these policies “currency wars”, which is a good way to describe the latest developments. And such policies are not limited to Japan.

Bloomberg: – The alert from the country that chairs the Group of 20 came as Luxembourg Prime Minister Jean-Claude Juncker complained of a “dangerously high” euro and officials in Norway and Sweden expressed exchange-rate concern.
The push for weaker currencies is being driven by a need to find new sources of economic growth as monetary and fiscal policies run out of room. The risk is as each country tries to boost exports, it hurts the competitiveness of other economies and provokes retaliation.
Yesterday “will go down as the first day European policy makers fired a shot in the 2013 currency war,” said Chris Turner, head of foreign-exchange strategy at ING Groep NV in London….

CNBC’s Bob Pisani and Art Cashin – potential currency wars and German gold supplies

CNBC’s Bob Pisani and Art Cashin, of UBS, discuss when the “debt ceiling” issue will get to the front plate, potential currency wars and German gold supplies.

CNBC: First Shots Fired in Global ‘Currency War’

Faced with a stubbornly slow and uneven global economic recovery, more countries are likely to resort to cutting the value of their currencies in order to gain a competitive edge.
Japan has set the stage for a potential global currency war, announcing plans to create money and buy bonds as the government of Prime Minister Shinzo Abe looks to stimulate the moribund growth pace. (Read MoreJapan PM Says BOJ Must Set 2% Medium-Term Inflation Goal)

How Many Central Banks Does It Take To Generate 1% GDP Growth In 5 Years?

By order of their various ‘independent’ masters, the world’s central banks have “got to work” over the past few years. Running the printing presses under the guise of various multi-syllabic programs designed to optically lower interest rates and feed fungible resources to its banking systems – that will inevitably (surely) flow to the real economy and make everything right with the world. Well, perhaps the following chart will explain just how good a “job” they are doing with that real-world, real-economy recovery…

(h/t @Not_Jim_Cramer)

Here is the king of inflation Paul Krugman stumbling to answer why inflation is good

LOL krugman: “you CAN invest in inflation-adjusted bonds to protect yourself against inflation….”
Go figure who cooks inflation rates: bankrupt governments all around the world.

GOLDMAN: Oil Could Rally To $150 This Summer

Jeffrey Currie, the influential oil analyst who heads commodity research at Goldman Sachs, said today at a conference in Frankfurt, Germany, that Brent crude oil prices could rise to $150 per barrel this summer.

Brent crude futures are currently trading around $110 per barrel, implying 36 percent upside from here.
Hans Bentzien at Dow Joneshas the scoop:
Mr. Currie pointed out that despite the boom in U.S. shale gas, the oil price remains high, which he attributed primarily to sanction-related supply disruptions in Iran.
Trying to compensate for this, Saudi Arabia has already increased its oil production to a 30-year high this year.
At the same time, Mr. Currie added that while global oil demand has increased at a slower pace, it is still higher than the production increases in non-OPEC countries.

CHART: The Real Inflation Rate Is 11% According To CPI Calculations From 1980s (December Update)

UPDATE - The chart above has been updated to include data for December, showing the true CPI at just under 10%.

From Shadow Stats
The CPI on the Alternate Data Series tab here reflects the CPI as if it were calculated using the methodologies in place in 1980.  In general terms, methodological shifts in government reporting have depressed reported inflation, moving the concept of the CPI away from being a measure of the cost of living needed to maintain a constant standard of living. Further definition is provided in our CPI Glossary.
Courtesy: Investmentwatchblog