Sentences with phrase «currency debasement»
Currency debasement refers to the intentional reduction in the value or quality of a country's currency. This can happen when the government increases the amount of money in circulation, leading to inflation or decreased purchasing power. It is usually done to pay off debts or stimulate the economy, but it can negatively affect the citizens as their money becomes worth less. Full definition
Unknowingly priming the market were yuan bears who dominated the news with forecasts of a mega-devaluation before Chinese New Year, and Chinese savers fearful of currency debasement continued to purchase bitcoin as a hedge.
coindesk.com
Gold can act as a hedge against quantitative easing and currency debasement because it is viewed as an alternative to fiat currencies.
Imminent fears of more currency debasement prompted Chinese bitcoin punters to break the cryptocurrency out of its $ 200 - to - $ 300 prison.
Mauldin describes all of these practices as «Code Red» policies, along with currency debasement in general.
Working people with little disposable cash who are nervous about the condition of the global economy can hedge against instability, systemic risk and currency debasement by acquiring a small allocation of silver.
The bottom line here is this: none of these investment vehicles are perfect, in fact many have significant flaws; but despite their flaws they attract money away from gold, thus undermining gold's monopoly on the fear / inflation / currency debasement trade.
The Fed's role will be to get the cash hoarders back into speculating on the newly de-toxified MBS by scaring the beejesus out of them with a knock out combination of fiat currency debasement and near zero yields.
Otherwise, the Fed & the BoJ clearly don't give a shit about the potential currency debasement implications of their actions, while the PBoC is obviously driven primarily by ideological considerations.
Nothing wrong with that, sure, if it not were for the need to justify the speculative claims with theories on currency debasement.
As for shrinking central bank balance sheets, I don't see that being any more likely than governments finally abandoning long - term currency debasement.
Against this backdrop don't rule out the possibility the government starts entertaining ideas for another round of stimulus, and that would mean more money printing and more currency debasement.
Fear of currency debasement (just look at the emerging market currencies), fear of capital confiscation (just look at the bail - in mechanism in Europe), etc..
No currency debasement.
Currency debasement / inflation will lower one's standard of living and destroy wealth not adequately protected.
For then the world might understand why even at its recent price above $ 1,300 per ounce gold has not come close to keeping up with the inflation, the currency debasement, of the last few decades, why gold has not fulfilled its function of hedging against inflation.
Should they succeed, it is unlikely that the inflation will stop at their targets (2 % here), and the next crisis will be one of currency debasement.
War finance (the currency debasement and credit expansion associated with funding war) has long been associated with economic distortion including World War I, which preceded «The Forgotten Depression.»
But you have to wonder if that will be offset by higher inflation, currency debasement and / or other unintended consequences?
[In terms of size... otherwise, it's an all too familiar exercise in currency debasement, which still fools people after thousands of years!].
This, of course, will quickly & inevitably lead to currency debasement and / or inflation.
RT @ReformedBroker: «Japan is important to watch, it's a pace car for stock market peaks, weird policy responses and currency debasement... Apr 11, 2013
Everywhere I look, I see better growth, better demographics, better government finances, lower debt and no currency debasement... And all this for stock market valuations that are similar to / cheaper than Western markets.