Gold and Silver Expert Mike Maloney of goldsilver.com reiterates the fact that governments are trading directly in currencies other than the dollar. Although he doesn’t call it currency wars as we did the bottom line is that governments around the world are becoming uneasy. Governments are becoming uneasy about the level of US debt and monetary policies like quantitative easing that devalue the dollar by increasing the money supply by printing up tremendous quantities of new dollars.
In this wide ranging interview Mike talks about his company’s new series, The Hidden Secrets of Money. He also thinks Bernake, Yellen and Sommers are just noise to take our attention away from the ball and the fact that the government created these problems through it flawed monetary policies and inflating the currency supplies. Mike says most wars are just attempts by governments to blame the other guy or the other country for the problems the government itself created.
Mike says the single line accounting in which banks have been listing gold they have leased out, which is really a receivable and not an asset, is illegal accounting and morally corrupt. But the good news for precious metals investors is that when the banks are forced to buy back the gold they have leased out the prices are sure to rise and that rise will probably be pretty dramatic.