Jesse reckons there's going to be a massive (30 - 40%) devaluation of the US dollar, in order to swindle foreign creditors.
Are there any currency experts out there who can tell me whether the UK won't race to do the same? Will the Yen and the Renminbi be forced upwards, relatively speaking? Should we be buying dried food etc instead of holding cash?
2 comments:
I can promise you that no government likes it when terrified citizens hoard cash. Governments tend to affect change by making it painful to hold cash (combination of low rates and higher inflation).
It is entirely possible that we will see competitive currency debasement, as all countries (even the United States) will be trying to goose the export sector.
I'm not really into FX much, but the Yen has gone up against the Dollar this week and there are already protests in the Japanese media. They will fight tooth and nail to retain cheap yen - otherwise, any remaining Japanese economic growth will really go down the pan.
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