Group of 20 vows to avoid currency devaluations

[KissMy]

This could cause a huge drop in Gold Prices.

Group of 20 vows to avoid currency devaluations.

Global finance leaders, under pressure to show unselfishness in their economic policies, agreed Saturday to boost cooperation on rebalancing the world economy to help defuse tensions that had sparked fears of damaging trade conflicts.

The Group of 20 vowed to avoid potentially debilitating currency devaluations and reduce trade and current account imbalances, amid a growing recognition that restructuring the world economy is necessary to accommodate the greater role played by fast-growing China and other developing economies.

G-20 finance ministers and central bank governors met for two days in the South Korean city of Gyeongju ahead of a summit of their leaders in Seoul next month. Just two weeks ago, a G-20 meeting in Washington failed to resolve differences that had led to fears of a possible trade war that could trigger another economic downturn.

Nations in Asia and other regions have been trying to stem strength in their currencies amid sustained weakness in the U.S. dollar out of fear their exports will become less competitive in world markets. At the same time, China's currency, the yuan, has been effectively pegged to the greenback, provoking criticism that it is being kept artificially low and giving China's exporters an unfair advantage.

 

[Baruch Menachem]

When they do this, usually what happens in the renege in the next week. So we will be seeing competitive devaluations over the next several months. Except from China. Which for its own reasons artificially overvalues its currency.

So this is a good time to dump currency and go for gold. The more they talk of their being honest, the faster you count the silver.

 

[KissMy]

Yea, Thats true. I should wait until gold drops a hundred & buy it up in the low $1,200 range. Pile on more silver while I'm at it.

 

[KissMy]

Wow Gold is up $11 & climbing in the first few hours of overnight trading in foreign countries. The ink is not even dry on the G20 agreement & people do not believe it or governments are violating it.

 

[Baruch Menachem]

Wow Gold is up $11 & climbing in the first few hours of overnight trading in foreign countries. The ink is not even dry on the G20 agreement & people do not believe it or governments are violating it.

I would change the sentence " The ink is not even dry on the G20 agreement & people do not believe it or governments are violating it" to " The ink is not even dry on the G20 agreement & people do not believe it and governments are violating it"

 

[KissMy]

Apparently you are correct.

Gold is up $35 from Fridays low. Silver & Crude Oil are also soaring. Geithner & this Administration have proven once again that they will lie straight to your face. The dollar dropped to the mid 76 levels.

 

[KissMy]

Rick Santelli just announced the US Dollar just made record lows.

 

[Mad Scientist]

This just means there will be currency devaluations. The Fed is going to print more money and inflation will result.

 

[editec]

HOW?

How do they offically DECLARE a lower valuation and WHY would the market give a fig about that offical pronouncement?

Seems to me the government propose but the MARKET disposes.

What am I missing, here?

 

[william the wie]

QEII to the rescue of my portfolio.

 

[KissMy]

I do not know what to think about the QEII Jawboning by the Fed. Since the initial drop after the G20 meeting. The DXDBX & DXY US Dollar index has been rising. The G20 seem to be honoring their agreement. The Feds previous QEII Jawboning was in direct contradiction to this G20 agreement. The Fed has been tight lipped every since. I sold all Stocks, Oil, Commodities & Gold & Silver derivatives 10 days ago & am sitting on cash & a pile of Gold & Silver in the Vault. The Fed may disappoint the markets & big losses may ensue.