HAS THE FIRST CURRENCY CRISIS BEGUN?

From GOLD SCENTS by Toby Connor
January 27, 2013 - 4:06pm

As many of you who have read my work in the past know, I expect the eventual endgame to this whole Keynesian monetary experiment that has been going on ever since World War II, to finally terminate in a global currency crisis. I'm starting to wonder if we aren't seeing the first domino start to topple.I'm talking about the Japanese Yen of course.I think everyone just naturally assumes that the Yen is dropping in response to Prime Minister Abe's intent to imitate US policy and attempt to print it's way out of its troubles. The problem with this strategy is of course, eventually you will break your currency. Japan is in a particularly tenuous situation in that their debt to GDP dwarfs most of the rest of the world. The only hope they have of servicing this debt is for interest rates to stay basically at zero. Any move by interest rates above this artificially low level and ...


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