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.
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..
Not exact matches
Currency debasement / inflation will lower one's standard
of living and destroy wealth not adequately protected.
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.
Either deflation's growing momentum will pull today's faltering economies into the ever - growing maw
of a deflationary collapse or the continued printing
of money to stave off such a collapse will end with the complete
debasement of paper
currencies in a hyperinflationary blowoff.
4) Governments introduce
currencies and often cheat on them (
debasement, or inflation
of a fiat
currency).
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.
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.
That's 95 %
of the
currencies that are exchanged in the world and they're the ones that are the primary
debasement on the other side, which I was referring to,
of the bricks.
The whole discussion that we should have on here is on de-dollarization, but the conflict that's going on right now and part
of the answer out
of that is what's going to happen to cryptocurrencies because it's a way
of getting around the controls that the central banks really have on the creation
of money, the value
of that money and the
debasements of those
currencies.
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.
I've heard proposals for further
debasement of the
currency via placing expiration dates on
currency, or randomly canceling
currency through lotteries based on the serial numbers on the bills.
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.
Mauldin describes all
of these practices as «Code Red» policies, along with
currency debasement in general.
[In terms
of size... otherwise, it's an all too familiar exercise in
currency debasement, which still fools people after thousands
of years!].
If China will not allow its
currency to strengthen, well then, the path
of least resistance is for the US to debase its
currency, leading the world in a cycle
of competitive
debasement / inflation.
4) Governments introduce
currencies and often cheat on them (
debasement, or inflation
of a fiat
currency).
This,
of course, will quickly & inevitably lead to
currency debasement and / or inflation.
And bearing in mind unprecedented stimulus this time» round, the fact that post-credit crisis volatility has proved to be far less responsive & far more jagged — not to mention central banks have failed to generate any appreciable price inflation, despite all forecasts to the contrary — is rather terrifying confirmation
of how bad the underlying collapse & deleveraging really was (& still is), absent
currency debasement...
Since then, I try to focus on hard and / or naturally yielding assets, while trying to stay independent from the long - term
debasement of fiat
currencies.
Imminent fears
of more
currency debasement prompted Chinese bitcoin punters to break the cryptocurrency out
of its $ 200 - to - $ 300 prison.