Peter Krauth

Are You About to Lose Your Savings in the Currency War? Money Morning

You may not have even noticed, but the first shots have already been fired in the next World War.

Only this time there are no tanks, fighter jets, nuclear subs, or missiles. And it’s not the North against South, or even East against West.

It’s war by other means and it pits fiat currency against fiat currency in a multi-trillion dollar knock-down drag out between the world’s central bankers.

At stake is nothing less than the value of your life savings.

Its goal is to cheapen worldwide currencies-which could make every dollar you own worth even less.

Thanks to horrible fiscal mismanagement, virtually every nation in the world now wants its own currency to become cheaper against those of other nations.

Welcome to the currency wars.

Think of it as a race to the bottom. But where it stops nobody knows.

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Good News for Gold Prices: Commodities are Wounded, But Far From Dead

Greece is frozen in a political stalemate. Youth unemployment is running at over 50%. And there has been a $1 billion run on Greek banks.

From near and afar, there appears to be no easy way out, especially now that the Eurozone is heading back into a recession.

It’s times like these when investors pour into the U.S. dollar for its “perceived safety.”

With commodities priced in U.S. dollars, this spike in the greenback has sent commodities-including gold prices-into a tailspin since early March.

That has many doubters asking: “Has the commodities super-cycle ended?”

It’s a reasonable question considering the Continuous Commodity Index (CCI) is back down to levels it last saw in September 2010.

What’s more, gold prices have backed off to near $1,500/oz., and oil prices have fallen from $110 to $90/barrel.

But as you’ll see, the commodities coin does have another side.

The Other Side of the Commodities Story

In fact, a recent article by Frank Holmes, CEO and chief investment officer at U.S. Global Investors, pointed out how China and other emerging nations are in better fiscal shape than much of the West.

Even if China is slowing somewhat, it is still growing at an enviable 8% per year, with only 42% debt to GDP ratio. So rather than go for more outright stimulus, it’s expected that China will target new loan growth and its M2-money supply growth to around 14%.

Meanwhile, India and Australia have just lowered interest rates while other central banks are basically refusing to raise rates.

It means the world will keep turning, people will keep consuming and annual demand of raw materials is likely to remain elevated.

As for gold prices, let’s cut right to the chase.

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