8/04/2011 PERMALINK
Having the country in charge of the world's reserve currency degenerate into a kleptocratic, idiocracy certainly makes for interesting times. Wow, the Fed's massive money printing is really destabilizing the world's financial system now. Even those central banks that previously had the good sense to try to avoid screwing their own consumers by debasing their currencies in response to the Fed's insanity, have now thrown in the towel and started printing amazing amounts of their own money.

Every major central bank is now printing money to keep their currencies from rising in response to the Fed's massive debasement of the dollar. Central banks have also gone from gradual gold sellers to heavy gold buyers in the last two years. Obviously, I'm no longer the only person worried that the Fed's actions could precipitate a dollar hyperinflation, which might infect most, if not all, of the world's other fiat monies.

The dollar, euro, yen and pound all seem like a bunch of drunken sailors staggering down the dock trying to get back to their ship. If any one of them trips, they are all going down.

In the very short term, the outbreak of a major new battle in the ongoing worldwide currency war could prove positive for America consumers. Since it will export much of the inflationary effect of the Fed's dollar debasement scheme to other currencies.

Estimates I've seen of just how much money has been created worldwide in the last three years are simply stunning. And here we go, into yet another heavy round of retaliatory money printing.

The outbreak of a full blown currency war, certainly adds a lot of credence to my theory that a hyperinflation in the dollar is likely to trigger a domino effect that could destroy the buying power of most of the world other fiat currencies.

Yep! Having the country in charge of the world's reserve currency degenerate into a kleptocratic idiocracy, certainly does make for interesting times.