As I’ve long predicted, the President has now determined that a massive increase in exports is necessary to bring our balance of payments deficit under control. The best way to do this is to de-value the dollar, make it depreciate, which makes U.S. goods cheaper for foreigners to buy.

Don’t believe any politician who says they “support a strong dollar”! No politician in Japan is saying they “support a strong Yen”. The Yen is now at a 15-year high against the dollar and killing their exports. Two-thirds of Japan’s businesses are now losing money as a result.

The strongest country in Europe right now is Germany, whose exports surged 8% in the second quarter alone. Make no mistake: this largely reflects the 20% decrease in the value of the Euro. Currency prices matter!

The problem is that every heavily indebted nation needs to depreciate its currency, and we may see “competitive devaluation”, which is an invitation to inflation.

Maybe, that’s why gold is up 13% this year?