ON Currencies

This article, along with its sequel make for good reads. This is stuff that you will not find in the mainstream media, but it is still information that is worth something. Without knowing these tidbits of information, those trying their luck at investing will be doomed to fall into the trap of acting without knowing while thinking that one knows.

Being aware of the problem of information overload, it is likely that this blog helps cut through the Apocalyptic scenarios, and goes with the empirical evidence.

So, an excerpt from the sequel:

With cost-pushed inflation bringing higher interest rates in a cycle of slowing economy and weaker earnings caused by a housing bust in the United States, rising wages that still fail to keep up with real inflation from currency devaluation, dwindling consumer demand from income disparity, and trade friction threatening to turn into protectionist measures, cheap money can evaporate quickly, to put a sudden stop to the recent merger-and-acquisition frenzy by private-equity firms, and turn completed deals into bankruptcy candidates.