The Race To The Fiat Bottom

The rising price in all global currencies suggests that everyone wants to win the race to the fiat bottom. It doesn't take much to turn the war of words into direct and indirect actions. Any option other than cooperative quantitative easing will have an immediate and harsh reaction in the capital markets. This would affect not only Wall Street but also as Main Street. Only a fool would cast their gold into weakness under these circumstances.

Headline: China blasts US congressional report on currency

A U.S. congressional report that called on Washington to do more to force China to increase the value of its currency constitutes interference in Beijing's internal affairs, the Chinese Foreign Ministry said Friday.

Ministry spokesman Hong Lei accused the U.S.-China Economic and Security Review Commission of having a "Cold War mentality" and of harboring a grudge against China.

Source: finance.yahoo.com

Headline: Bernanke defends bond-purchase plan, warns China

Federal Reserve Chairman Ben Bernanke hit back at critics, both at home and abroad, who have challenged the central bank's $600 billion bond-purchase program.

In a speech in Germany, he argued that Congress must help support the Fed's program with further stimulus aid. And he issued a stern warning to China, saying it and other emerging nations are putting the global economy at risk by keeping their currencies artificially low.

Source: news.yahoo.com