Currency devaluation becomes the solution to all economic problems

Japan's Prime Minister Shinzo Abe attends a news conference at his official residence in Tokyo

Source: BullionStar – Currency devaluation becomes the solution to all economic problems

Days before Shinzo Abe became Japan’s prime minister in December 2012, he remarked “Central banks around the world are printing money, supporting their economies and increasing exports. America is the prime example. If it goes on like this, the yen will inevitably strengthen. It’s vital to resist this.

Shinzo Abe’s remarks summarized a prevalent theme in central banks’ attempts to jumpstart their domestic economies today – money printing. I prefer to call it currency printing since it is fiat currencies that are being created out of thin air.

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Michelin Chefs Toast Abe as Yen Turns $5,000 Wine Cheap (Oct 2013)

Japan's Prime Minister Shinzo Abe attends a news conference at his official residence in Tokyo

Source: Bloomberg – Michelin Chefs Toast Abe as Yen Turns $5,000 Wine Cheap

Notable excerpts:

Tokyo’s Michelin-starred chefs are raising a glass to Prime Minister Shinzo Abe’s effort to revive the economy as a weak yen and stronger corporate profits put gourmet dinners back on the menu for tourists and local bosses.

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China Working Quietly To Buy Up Gold (Jul 2013)

Chinese gold buying

Source: Forbes – China Working Quietly To Buy Up Gold

Notable excerpts:

The Fed’s preferred measures of inflation are so low they’re in the Fed’s panic zone. What gives?

“There’s an ideal playbook, and it would look something like this,” James Rickards, author of the New York Times bestseller Currency Wars, explained. “You’d have higher inflation than we have today, but not super high. It might be in the 3-4% range. GDP of maybe 5%, which is pretty high, and then that would bring down the debt-to-GDP ratio so the United States doesn’t look like Greece.”

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G8 Needs To Deal With Impact Of Abenomics (Jun 2013)

japanese_yen

Source: Financial Times –G8 needs to deal with impact of Abenomics, says Hyun Oh-seok

Notable excerpts:

South Korea has warned that G8 leaders need to do more to tackle the “unintended consequences” of Japan’s monetary easing when they gather for a summit later this month amid mounting concerns about the knock-on effects of a weaker yen.

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US Blocks Sale Of Gold To Iranians To Undermine Rial (May 2013)

central_bank-gold

Source: CNA – US targets Iran rial, gold imports in sanctions pressure

Notable excerpts:

The United States is working to block sales of gold to Iranians in order to undermine their currency, the rial, and to step up pressure on Tehran over its nuclear program, officials said Wednesday.

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