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The world’s central banks —including the Federal Reserve, the European Central Bank, The Bank of England, and the Bank of Japan — have all pursued easy monetary policies in their efforts to stimulate their local economies.Two months ago, BI’s Joe Weisenthal said that all of these actions would lead to more talk about currency wars.
Recently, Japan announced that they would be holding new elections. And the consensus believes that the new leadership will pursue ultra aggressive monetary policy in the for of unlimited quantitative easing.
UBS’s Art Cashin warned Erik King of King World News that this could lead to full blown currency wars.
“What troubles me in that area is the call for elections in Japan, and the fact that Mr. Abe, who had been Prime Minister, may come back. He has called for unlimited monetary easing from the Bank of Japan and the Ministry of Finance.
It sounds to me like we are on the verge of a major currency war, under the guise of monetary policy. He specifically said, ‘I want to see the rate of inflation go above 3%.’ Now I’m sure they are bright enough not to get into something like Germany in the Weimar Republic. But we’ve got central banks all around the world beginning to play with fire.”
In the interview, Cashin also shares his thoughts on gold and the escalating conflict in the Gaza strip.
Read more at KingWorldNews.com.
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