In the closed door offices of central bankers from Brazil to
Moscow, there is a growing concern that the currency wars of QE I, II
and III will eventually take a turn for the worst. And there is not much
they can do about it.
While it might not be a surprising turn, the problem is no one really knows what to do when inflation hits the U.S. and elsewhere.
“In the not-so-distant future the world’s central bankers will have to find alternative global reserve currencies to replace the developed world incumbents,” says Jan Dehn, an economist with the Ashmore Group in London, a wealth management firm with $71 billion under management. “China has seen the light, but other emerging market countries are still to fully grasp the risks and opportunities associated with the demise of the global reserve currencies in the years ahead,” says Dehn.
For the layman, what Russian and Brazilian central bankers do is of no concern. But in the big bad world of dollars, euros and yens, those bankers are holding the gold. Some 80% of all foreign currency reserves are sitting in a bank somewhere in the emerging markets. China alone has over $4 trillion in reserves. Russia, Brazil and India have a little over a trillion combined.
http://www.forbes.com/sites/kenrapoza/2015/06/01/american-inflation-soon-to-be-every-central-bankers-worst-nightmare/
While it might not be a surprising turn, the problem is no one really knows what to do when inflation hits the U.S. and elsewhere.
“In the not-so-distant future the world’s central bankers will have to find alternative global reserve currencies to replace the developed world incumbents,” says Jan Dehn, an economist with the Ashmore Group in London, a wealth management firm with $71 billion under management. “China has seen the light, but other emerging market countries are still to fully grasp the risks and opportunities associated with the demise of the global reserve currencies in the years ahead,” says Dehn.
For the layman, what Russian and Brazilian central bankers do is of no concern. But in the big bad world of dollars, euros and yens, those bankers are holding the gold. Some 80% of all foreign currency reserves are sitting in a bank somewhere in the emerging markets. China alone has over $4 trillion in reserves. Russia, Brazil and India have a little over a trillion combined.
http://www.forbes.com/sites/kenrapoza/2015/06/01/american-inflation-soon-to-be-every-central-bankers-worst-nightmare/
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