Hozzászólás

If the answer to the latter question is yes, then EURUSD could very well trade at 1.45 or 1.50 relatively soon and AUDUSD to 1.05 or higher. But won’t the ECB and German officials begin to scream bloody murder already at a level of 1.40? And even the RBA might begin to protest starting at around parity in AUDUSD. And In this case, if every country around the world increasingly begins to join the competitive devaluation chorus and threatens intervention/lower rates/controls/you-name-it to prevent currency appreciation, it could spark a super-bubble in the only hard currency – precious metals, a bubble that could even result in the death of all fiat currencies as we know them if the logic of such a bubble is taken to its extreme logical endpoint.