The currency wars
Today, the U.S. Federal Reserve, under the guidance of Chairman Ben Bernanke, is engaged in the
greatest gamble in the history of finance. Beginning in 2007, the Fed fought off economic collapse by
cutting short-term interest rates and lending freely. Eventually rates reached zero, and the Fed
appeared to be out of bullets.
Then, in 2008, the Fed found a new bullet: quantitative easing. While the Fed describes the program
as an easing of financial conditions through the lowering of long-term interest rates, this is essentially
a program of printing money to spur growth.
The Fed is attempting to inflate asset prices, commodity prices and consumer prices to offset the
natural deflation that follows a crash. It is basically engaged in a game of tug-of-war against the
deflation that normally accompanies a depression.
The words of MR. James Rickards,
Now lets change this world.
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i follow you now please follow me
I think distrust in centrally managed currencies is driving some of the interest in cryptocurrencies.