Now Brazil Is Intervening To Weaken Its Currency, As The Competitive Devaluation Cycle Heats Up

Several months ago the British Pound took a hit. Soon afterwards, it was the Euro's turn. Last week the Bank of Japan took steps to weaken the Yen. Now the Brazilian Real appears to be headed behind the global liquidity woodshed.

These competitive currency devaluations, designed to benefit one nation at the expense of another, only temporarily redistribute rather than alter the size of the economic pie. Yet, despite minimal long-term impact, there's no end in sight for fiat devaluations. Why? Currency devaluation or the cheapening of previously issued bonds through on-going default maintains the status quo. Yes, it punishes saving and savers within the paper world, but that voice is relatively quiet in terms of influence.

Fear not, the world of risk and reward vote with their feet. As the fiat world continues its on-going default, capital both large and small, continues to move into the safety of gold (and silver). This is reflective in the persistence, secular up trends in the global fiat price of gold.

British Pound Gold


Euro Gold


Yen Gold


Real Gold


Source: businessinsider.com

From Bob