A credit crisis is developing and it probably will devastate currencies, GoldMoney research director Alasdair Macleod writes today.
The crisis, Macleod writes, "will almost certainly be far greater than Lehman. We can also say that the money printing by central banks to rescue both the banking system and government finances will be on a far greater scale, likely to destabilize the purchasing power of government currencies. If that happens, interest rates will be forced higher as prices for everything begin to rise uncontrollably, irrespective of central bank interest rate policies. And where they depend on budget deficits being covered by additional issues of government stock, government finances will be in crisis. It will threaten the ending of unbacked currencies based only on the faith and credit of governments whose spending is spiraling out of control."
Macleod's commentary is headlined "The Monetary Lessons from Germany" and it's posted at GoldMoney here:
https://www.goldmoney.com/research/goldmoney-...netary-lesso...
