Global ‘currency war’ takes a dramatic twist – now this is, of course, the currency war relating to the Swiss franc when they’ve now abandoned the floating exchange rate. But in this article, is an important quote from David Bloom of HSBC that I want to refer to, Max, “Gold is the only safe haven asset that will not do QE, put in capital controls, or complain.”
Well Stacy, you’ve got this global game of musical chairs or as I like to think of it, “pass the grenade.” Money is seeking safe harbor and they’re moving to currencies that have the perception of being safe harbors, like the Swiss franc. But now, that’s no longer a safe harbor.
So, money is being driven into the Norwegian krone and to some extent, the Australian dollar and maybe a little into the Canadian dollar. But those currencies, too, will collapse. All fiat currencies will collapse. Now, all of this is going on, the various bodies that regulate and oversee the trading of gold and silver, keep raising the margin requirements.
They are in effect creating a de facto gold standard by trying to stop the creation of a de facto global gold standard.
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