Thursday, September 8, 2011

Global Inflation Madness Spreads to Norway

Hans Palmstierna emails:

Hi Robert,

Don't know if minor monetary news reaches your shores, but I just read in Nordic media that Norway is the latest contestant in the currency debasement race. According to their central bank head "A too strong Krone (NOK) could result in too low inflation and too low economic growth. " and that "In such a scenario, proper monetary action will be taken, with the interest rate as the relevant tool".

I'm thinking that once this thing gets started, its going to go exponential. Sends a chill down my spine just thinking about it.

Thanks for the EPJ Daily - I read it minutes after it arrives at the latest.

2 comments:

  1. Honest question: If the Euro and other EZ currencies go hyper, will that cause a flight to the Dollar in addition to gold?

    If so, will that strengthen the dollar temporarity? Or will the trashing of the EuroZone monies drag the dollar down as well?

    I don't have a great grasp of how the currencies compete in this scenario.

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  2. Sounds like once this 'money' devalues, a flight to safety is all there is. With Central Banks holding the majority of the world's gold, hmmmm, I wonder why fiat money would devalue FASTER under their efforts to save the system?

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