Buy Gold

I had never realised until recently that governments could solve so many financial problems by printing money. To my simple mind, it always seemed to be a too simple remedy fraught with all kinds of problems. But now they are all at it. We have printed £75,000,000,000 of extra cash and we are about to follow up with some more. But this is as nothing compared with the USA - where things are always bigger and better. They have started on the massive task of churning out $1,750,000,000,000, which should be enough to keep things going for a while. The European Central Bank has decided to join in as well. Why not? Even the boring and very prudent Swiss are at it; the money supply in Switzerland is increasing, so I am reliably informed, at the rate of 30% per year. That should cure many problems. Of course, Swiss banks have some spectacular black holes in their accounts which have not yet been fully revealed - so you can't be too careful.

I never studied economics, so I was never under any illusion that I understood economics. But surely this can never work. Are all these countries competing with each other to see which can devalue its currency the fastest?

The Chinese want a new reserve currency. It 's not surprising. If they have so much money invested in the west, they do not want it to end up like Monopoly money and quite valueless. I think buying gold will be a wise move.