The Biggest Currency Printers Will Be The Biggest Losers - Business Insider

The Biggest Currency Printers Will Be The Biggest Losers - Business Insider

Peter Schiff made an interesting argument that I partly agree with in his article today on BI. However there are solutions that could mitigate many of the effects of currency printing as I posted the following comment to this article:

I agree with Schiff's statement:

"Clearly there must be a tipping point where lost purchasing power overcomes supposed gains in growth."

I also believe that fiat currencies have destroyed the fixed 30 year mortgage, hurt housing as a store of value, and make it necessary that Americans realize all markets are now subject to manipulation.

But this economic war of the currencies is better than fighting with guns. My problem is more with the speculation that is permitted. If the powers that be seriously stopped the speculation, the impact of some currency debasement would be far less.

But the libertarians like Schiff don't want any interference with Goldman Sachs and others taking positions so big in commodities that they literally control the pricing and corner the markets.

And folks, manipulation of markets, as I have said before, destroys things, like house prices and commodities as a store of value. It is more, I think, about manipulation of the price of things by the elite that is more  distressing than simple competitiveness of currencies. 

Money has always been a liquid store of value. Things, ie, houses and commodities have been taken down as a store of value time and again. Eventually folks get gun shy and MainStreet avoids the stock market and frets about the housing market.

 

Countries that refuse to play the game of devaluation inevitably do not grow the economy. Countries that play the game of devaluation lose purchasing power but much of that purchasing power is lost through speculation, not the devaluation of the currency.