Global Money Printing Is A Recipe For A Global Economic Nightmare (+2K Views)

If the U.S. dollar is being devalued so rapidly, then why does it sometimes increase in value against other global currencies?  It is because  there are times when one particular global currency will fall faster than the others but the reality is that they are all being rapidly devalued.  As the 6 charts below illustrate, the UK, the EU, Japan, China and India, as well as the U.S., have all been printing money like there is no tomorrow.  Unfortunately, this is a recipe for a global economic nightmare. Words: 1102

So says  theeconomiccollapseblog.com in an article* which Lorimer Wilson, editor of www.munKNEE.com, has reformatted and edited  below for the sake of clarity and brevity to ensure a fast and easy read. (Please note that this paragraph must be included in any article re-posting to avoid copyright infringement.) The article goes on to say:

Right now you can almost smell the panic as it rises in global financial markets. Paper money is no longer considered to be safe.  All over the globe investors are watching all of the reckless money printing that has been going on and they are becoming alarmed and an increasing number of investors and financial institutions are putting their wealth into hard assets that are real and tangible in an effort to preserve their wealth. Gold hit a record high last year and it is on the rise again… Demand for silver is becoming absolutely ridiculous right now.  Oil is marching up towards $100 a barrel again.  Agricultural commodities have exploded in price over the past year.  Many investors are even gobbling up art and other collectibles.

The charts below show how central banks all over the globe have been recklessly printing money.  Over the last 30 years virtually the entire world has developed a great love affair with fiat currency….

Charts of 6 Countries Printing Money Like There Was No Tomorrow

The United States is printing lots of money…..

Source:  The St. Louis Fed

The United Kingdom is printing lots of money…..

Source: The BoE

The European Union is printing lots of money….

Source: The ECB

Japan is printing lots of money…..

Source: The BoJ

China is printing lots of money…..

Source: The People’s Bank of China

India is printing lots of money…..

Source: Reserve Bank of India

What Will Result from All This Money Printing?

Anyone with half a brain can see where all of this is ultimately headed.  In the end, inflation is going to spiral out of control and we are going to witness financial implosion on a global scale. It would make a lot of sense if the above mentioned nations, and many more too, just adopted sound money but, believe it or not, as members of the IMF, they are specifically prohibited from having gold-backed currency. Yes, you read that correctly – specifically prohibited!

U.S. Representative Ron Paul once sent an open letter to the U.S. Treasury and the Federal Reserve [informing them, as if they did not already know, that because] the IMF prevented its member countries from linking their currency to gold they were, in fact, forbidding countries suffering from an erratic monetary policy from adopting the most effective means of stabilizing their currency and, as such, delaying a country’s recovery from an economic crisis and retarding economic growth, thus furthering economic and political instability. He did not receive a reply.

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Sadly, the truth is that the global elite don’t want nations to start adopting gold-backed currencies.  They want countries to use fiat currencies that they can openly manipulate for their own benefit.

At this point, every nation on earth (to the best of my knowledge) uses a fiat currency.  All of the major global currencies are being continually devalued.  In fact, there are times when counties will purposely devalue their currencies even more rapidly in order to gain a competitive advantage in world trade. This is why so many investors now have such an aversion to paper currency.  It starts losing value the moment you take possession of it.

Which Assets Benefit from Excessive Money Printing?

In some areas of the world, “gold fever” is absolutely exploding.  For example, China imported five times as much gold in 2010 as it did in 2009.  On the Shanghai Gold Exchange, trading volume soared 43 percent during the first 10 months of 2010. [Indeed,] gold, silver and other precious metals are now seen as a great hedge against inflation worldwide.  Investors all over the globe are demonstrating a strong preference for “real money” over “paper money”.

What Does All This Money Printing Mean?

It means that some tremendous imbalances are being built up in the global financial system.  The central banks of the world must continue to inflate these bubbles with constantly increasing amounts of paper money and debt in order to keep the game going.  If, at some point, the reckless money printing comes to a screeching halt it is going to unleash hell on global financial markets. [However,] if all of this reckless money printing continues we are eventually going to see horrific inflation all over the planet.  In fact, we are already seeing significant inflation happening in many areas of the globe.  Almost every single day [we read] a new headline about inflation in China… rising food prices… sparking unrest in the Middle East and elsewhere.  Even U.S. consumers are starting to see some uncomfortable price increases at the gas pump and in the supermarket. [In fact,]… the whole world is going crazy with money printing.

Conclusion

Hopefully this whole thing is not going to end as badly as many of us fear that it will but right now the central banks of the world are pumping unprecedented amounts of cash into the global financial system, and those in the global financial system are funneling a very large percentage of that cash into hard assets.  Unless something changes, that is going to mean that prices for basic necessities such as food and gas are going to continue to rise.

We are in quite a fine mess… Does anyone see a way out?

*http://theeconomiccollapseblog.com/archives/6-charts-which-prove-that-central-banks-all-over-the-globe-are-recklessly-printing-money