Is Gold Getting Ready To Rip? Fed Aggressively Buying Securities Outright, Japan Fired First Shots In Global ‘Currency War’, Trust In Central Banks By Other Central Banks Is Ending, And Fitch Prepares To Downgrade U.S. Credit Rating
January 15th, 2013
First Shots Fired in Global ‘Currency War’
Faced with a stubbornly slow and uneven global economic recovery, more countries are likely to resort to cutting the value of their currencies in order to gain a competitive edge.
Japan has set the stage for a potential global currency war, announcing plans to create money and buy bonds as the government of Prime Minister Shinzo Abe looks to stimulate the moribund growth pace. (Read More: Japan PM Says BOJ Must Set 2% Medium-Term Inflation Goal)
Economists in turn are expecting others to follow that lead, setting off a battle that would benefit those that get out of the gate quickest but likely hamper the nascent global recovery and the relatively robust stock market.