The World At (Currency) War.

Nov. 3, 2010 - PRLog -- With the US is targeting China with its dollar cannons now that the US Congress has proposed a bill allowing US exporters to bring a motion for the levying of trade tariffs on goods imported to America from countries suspected of currency manipulation, one could be forgiven for thinking the platitudes made at countless G20 summits count for nothing.

“Omega-Trading” tells clients who ask why they should buy gold even at current price levels are told that it is because the Chinese are still pegging their renminbi/yuan to the dollar. It artificially makes US products more expensive and, consequently, that scuppers efforts to create and preserve manufacturing jobs in America.

In South America, as Brazil blasts away at Japan, South Korea and Taiwan, the country’s finance minister, Guido Mantega, proclaims thunderously, “We’re in the midst of an international currency war. This somewhat melodramatic tirade came after the Bank of Japan dipped into the foreign currency markets for the first time in 6years and selling a lot of yen and buying an awful lot of Brazilian real.

The expectations are that the US Federal Reserve and the Bank of England are preparing to open fire on the currency battlefield soon with new quantitative easing programs aimed at increasing the competitiveness of their exporters and safeguarding the jobs therein. “There are no alliances in these trenches and individuals should not trust the agents of the protagonists to insulate them from the inevitable fallout from these skirmishes”, said an “Omega-Trading” advisor.

The firm’s standing advice to its clients is that the paper money in their wallets and purses is becoming worth less each month and that it will continue to decline until it becomes worthless. “Hard assets – that is, commodities – continue to be our weapon of choice in the battle individuals must fight in order to avoid being systematically robbed of their wealth by the world’s central bankers’ collective refusal to accept recession as a natural phenomenon designed to clear out excess, malinvestment and impurities leaving a leaner, more efficient global economy in its wake”, said an “Omega-Trading” analyst.

Precious metals, agricultural commodities, farmland and real estate in some emerging economies represent the best means of preserving spending power at a time when money, as we know it, is on the brink of losing what little credibility it had once President Nixon abandoned the gold standard nearly 40 years ago.