The Difference Between Currency Wars and Financial Wars

by James Rickards

Note: It’s easy to confuse “currency wars” with “financial wars”… But in the following conversation with Sprott Global Research’s Henry Bonner, Jim Rickards explains why there is one major difference people often overlook… and it’s the one reason we’re more likely to see a currency war than a financial one. Read on…

Henry Bonner: Hi Jim. You have recently published Currency Wars and now The Death of Money. Are you expecting a global collapse of every currency? And if so, a collapse relative to what?

Jim Rickards: I expect a collapse in the value of currencies relative to real goods, real assets and real services. This will happen to all currencies, not just the dollar. I don’t expect a world where people lose confidence in the dollar and the euro does really well. On a relative basis, I’ve been bullish on the euro for some time. In the endgame, however, if people lose confidence in the dollar this will be inflationary in all countries around the word and I don’t think that any currency will be able to withstand it. When I say ‘the death of money’ what I really mean is the loss of confidence in the purchasing power of money. That’s very likely to be a global phenomenon not confined to any particular country.

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