GATA is the best source I know for reliable updates on the rapidly changing national and international situation and discussion of gold and currency issues, becoming ever more relevant as the global economy goes into free fall and trade and currency wars loom. The GATA newsletter reprints articles from the international press on precious metals and currency issues. You can subscribe to get them sent by e-mail.
1. Ralph Benko on the possible return to the gold standard, regularly dismissed as fantasy by mainstream economists and so-called experts.
Columnist Michael Kinsley is looking exceptionally prescient. Last May, in an article titled, “My Inflation Nightmare” in The Atlantic Monthly, he asked: “Am I crazy or is the commentariat ignoring our biggest economic threat?” Kinsley’s piece in The Atlantic Monthly anticipated a flood of articles in the world press exemplified by this UK Telegraph July 20 headline: “Gold reclaims its currency status as the global system unravels.” The evidence of the shift in the elite opinion stream is clear: The gold standard is returning to respectability….
2. Martin Crutsinger and Harry Dunphy: World Finance leaders fail to resolve currency dispute.
Global finance leaders failed Saturday to resolve deep differences that threaten the outbreak of a full-blown currency war. Various nations are seeking to devalue their currencies as a way to boost exports and jobs during hard economic times. The concern is that such efforts could trigger a repeat of the trade wars that contributed to the Great Depression of the 1930s as country after country raises projectionist barriers to imported goods.The International Monetary Fund wrapped up two days of talks with a communique that pledged to “deepen” its work in the area of currency movements, including conducting studies on the issue….
3. Ambrose Evans-Pritchard, The Telegraph, London: Currency wars are necessary if all else fails.
The overwhelming fact of the global currency system is that America needs a much weaker dollar to bring its economy back into kilter and avoid slow ruin, yet the rest of the world cannot easily handle the consequences of such a wrenching adjustment. There is not enough demand to go around. Asian investment in plant has run ahead of Western ability to consume. The debt-strapped households of Middle America, or Britain and Spain, can no longer hold up the dysfunctional edifice. Asians must take over, or it will come down on their own heads. The countries actively intervening in exchange markets to suppress their currencies — China, Japan, Korea, Thailand, even Switzerland, to name a few — are all too often the same ones that have the biggest trade surpluses with the US. They are taking active steps to prevent America extricating itself from the worst unemployment since the Great Depression, now 17.1pc on the latest U6 index and rising again. …Yet this is an intolerable situation for the US. It should be no surprise that Washington has begun to retaliate in earnest, and not just by passing the Reform for Fair Trade Act in the House (not yet the Senate), clearing the way for punitive tariffs against currency manipulators…
Filed under: Current Events, Economics & Finance, Politics, Roots of War & Domination | Tagged: Ambrose Evans-Pritchard, Currency devaluation, currency wars, GATA (Gold Anti-trust Action Committee, Global economy, gold standard, Harry Dunphy, inflation, International Monetary Fund, Martin Crutsinger, Michael Kinsley, Ralph Benko, Reform for Fair Trade Act, The Atlantic Monthly, trade surpluses, trade wars |