I watched a few interviews from Davos, but there is one comment in particular that has been stuck in my mind. In the same interview that is excerpted from Bloomberg below, Soros said that central banks do not control the exchange rate. On the surface, that does not seem to be such an enlightening statement. However, in light of the context of global coordination and the question posed by Grant Williams below, it’s still bugging me.
George Soros at the dinner he hosted in Davos:
“Currencies have been incredibly stable for the past few years; there’s now the possibility of fireworks.”
As commenter SafelyGraze said under the following article on ZeroHedge.
“Inflation is the only ‘solution’ to the world’s debt. There is no other option.”
Inflation and war. Those are the only solutions.
Inflation, war, and domestic confiscation. These three.
Inflation, war, domestic confiscation, and debt forgiveness. Four and only four.
Inflation, war, domestic confiscation, debt forgiveness, and further borrowing.
And a new monetary system.
There is no other option.
Grant Williams poses the question of the day:
Do they really think it is possible for them all to devalue their currencies against each other simultaneously and achieve anything but rampant and universal inflation at some future point in time?
Here’s a link to the article on ZeroHedge. Make note of the chart from Raoul Pal of the Global Macro Investor.
War Games: Grant Williams for Mauldin Economics
Here’s the full Davos Soros “Bad News Messenger” Bloomberg video. Don’t miss the part where George Soros explains the first-ever successful leopard changing its spots from destructive predator to vegetarian angel.