Commodity Trade Mantra: Re-ignited Currency Wars Will Lead Gold and Silver Much Higher
Article by Nathan McDonald in Commodity Trade Mantra
Gold is trading solidly above the $1500 mark and I believe we are only just getting started. The currency wars are back in full swing, and they will be more intense than ever.
The United States government, ironically, labeled China a currency manipulator for the first time since 1994, marking a severe uptick in their rhetoric against the Chinese government, as the trade wars continue to spiral out of control with seemingly no end in sight.
Many simply waved this move off as nothing more than what it initially appeared to be: jawboning with no true ramifications behind it. However, others see it as a blatant threat by the U.S. administration against China, as the last time this language was used twenty-five years ago was when China was placed on a currency blacklist.
Some were surprised by this move, as they see it as an overreaction, fearing that we have now moved into another phase of the ongoing currency wars that have bubbled behind the scenes for years—currency wars that are now in plain sight for all to see.
In addition to this, lowering the value of one’s currency drastically cuts down on the true cost of the national debt, in which the United States now finds itself roughly $22.5 trillion dollars in the hole.
Savers be damned. Retirees be damned. The race to the bottom must and will continue.
This race to the bottom is one of the many reasons why gold and silver are posting such impressive gains recently, as the markets are finally coming to the realization that many of us in the precious metals community reached years ago: the printing presses will not be slowed down; they will not be stopped.
The currency wars are here, they are full blown, and gold and silver are going higher in response to the madness erupting all around us. Much higher.
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