Currency Devaluation Quotes

Just for future reference, don't use words like "love" anymore. It's a very sensitive word and it wears out quickly. Romeo barely says it, but John Hinckley filled up a whole journal with it. To put it into your terms, it's a currency that's easily devalued. Pretty soon you're saying it whenever you hang up the phone or whenever you leave. It turns into an apology. Then it's an excuse. Some assholes want it to be a bulletproof vest: don't hate me; I love you. But mostly it just means--more. More, more--give me something more. A couple of years from now, when you're on your own completely, if you really fall in love, if it really comes to that--and I pity you if it does--you have to look right down into the black of her eyes, right down into the emptiness in there and feel everything, absolutely everything she needs and you have to be willing to drown in it, Kevin. You'd have to want to be crushed, buried alive. Because that's what real love feels like--choking. They used to bury some women in their wedding dresses, you know. I thought it was because all those husbands were too cheap to spring for another gown, but now it makes sense: love is your first foot in the grave. That's why the second most abused word is "forever".

The only currency that you alone can devalue is your integrity.

The beautiful came to this city [Hollywood] in huge pathetic herds, to suffer, to be humiliated, to see the powerful currency of their beauty devalued like the Russian ruble or Argentine peso;to work as bellhops, as bar hostesses, as garbage collectors, as maids. The city was a cliff and they were its stampeding lemmings. At the foot of the cliff was the valley of the broken dolls.

Ah yes, jobs. Once upon a time, souls were traded for immortality or riches. Now we are bought and sold with the promise of jobs. The human spirit is devalued currency. How the devil must be laughing.

Ah yes, jobs. Once upon a time, souls were traded for immortality or riches. Now we are bought and sold with the promise of jobs. The human spirit is devalued currency. How the devil must be laughing.

Printing dollars at home means higher inflation in China, higher food prices in Egypt and stock bubbles in Brazil. Printing money means that U.S. debt is devalued so foreign creditors get paid back in cheaper dollars. The devaluation means higher unemployment in developing economies as their exports become more expensive for Americans. The resulting inflation also means higher prices for inputs needed in developing economies like copper, corn, oil and wheat. Foreign countries have begun to fight back against U.S.-caused inflation through subsidies, tariffs and capital controls; the currency war is expanding fast.

If you give someone glowing praise for every little achievement, you've devalued the currency.

As with Rome, the fall of Constantinople happened only after its rulers had started devaluing the currency, a process that historians believe began in the reign of Constantine IX Monomachos (1042–1055).8 Along with monetary decline came the fiscal, military, cultural, and spiritual decline of the Empire, as it trudged on with increasing crises until it was overtaken by the Ottomans in 1453.

Over the decades since, I’ve repeatedly seen policymakers deliver such assurances immediately before currency devaluations, so I learned not to believe government policymakers when they assure you that they won’t let a currency devaluation happen. The more strongly they make those assurances, the more desperate the situation probably is, so the more likely it is that a devaluation will take place.

A “beautiful deleveraging” happens when the four levers are moved in a balanced way so as to reduce intolerable shocks and produce positive growth with falling debt burdens and acceptable inflation. More specifically, deleveragings become beautiful when there is enough stimulation (i.e., through “printing of money”/debt monetization and currency devaluation) to offset the deflationary deleveraging forces (austerity/defaults) and bring the nominal growth rate above the nominal interest rate—but not so much stimulation that inflation is accelerated, the currency is devaluated, and a new debt bubble arises.

When I worked as a concierge, I loved getting a pat on the back from a guest, because it's like a tip, only better, because it doesn't devalue like fiat currency, and it will buy me food at the store. Oh yes, shared body language is the best facilitator of trade, and here on my duck farm I accept high-fives for eggs.

Nero, who ruled from 54–68 AD, had found the formula to solve this, which was highly similar to Keynes's solution to Britain's and the U.S.'s problems after World War I: devaluing the currency would at once reduce the real wages of workers, reduce the burden of the government in subsidizing staples, and provide increased money for financing other government expenditure. The aureus coin was reduced from 8 to 7.2 grams, while the denarius's silver content was reduced from 3.9 to 3.41g. This provided some temporary relief, but had set in motion the highly destructive self-reinforcing cycle of popular anger, price controls, coin debasement, and price rises, following one another with the predictable regularity of the four seasons.

A prohibition on the hoarding or possession of gold was integral to the plan to devalue the dollar against gold and get people spending again. Against this background, FDR issued Executive Order 6102 on April 5, 1933, one of the most extraordinary executive orders in U.S. history. The blunt language over the signature of Franklin Delano Roosevelt speaks for itself: I, Franklin D. Roosevelt . . . declare that [a] national emergency still continues to exist and . . . do hereby prohibit the hoarding of gold coin, gold bullion, and gold certificates within the . . . United States by individuals, partnerships, associations and corporations.... All persons are hereby required to deliver, on or before May 1, 1933, to a Federal reserve bank . . . or to any member of the Federal Reserve System all gold coin, gold bullion and gold certificates now owned by them.... Whoever willfully violates any provision of this Executive Order . . . may be fined not more than $10,000 or . . . may be imprisoned for not more than ten years. The people of the United States were being ordered to surrender their gold to the government and were offered paper money at the exchange rate of $20.67 per ounce. Some relatively minor exceptions were made for dentists, jewelers and others who made “legitimate and customary” use of gold in their industry or art. Citizens were allowed to keep $100 worth of gold, about five ounces at 1933 prices, and gold in the form of rare coins. The $10,000 fine proposed in 1933 for those who continued to hoard gold in violation of the president’s order is equivalent to over $165,000 in today’s money, an extraordinarily large statutory fine. Roosevelt followed up with a

The “German problem” after 1970 became how to keep up with the Germans in terms of efficiency and productivity. One way, as above, was to serially devalue, but that was beginning to hurt. The other way was to tie your currency to the deutsche mark and thereby make your price and inflation rate the same as the Germans, which it turned out would also hurt, but in a different way. The problem with keeping up with the Germans is that German industrial exports have the lowest price elasticities in the world. In plain English, Germany makes really great stuff that everyone wants and will pay more for in comparison to all the alternatives. So when you tie your currency to the deutsche mark, you are making a one-way bet that your industry can be as competitive as the Germans in terms of quality and price. That would be difficult enough if the deutsche mark hadn’t been undervalued for most of the postwar period and both German labor costs and inflation rates were lower than average, but unfortunately for everyone else, they were. That gave the German economy the advantage in producing less-than-great stuff too, thereby undercutting competitors in products lower down, as well as higher up the value-added chain. Add to this contemporary German wages, which have seen real declines over the 2000s, and you have an economy that is extremely hard to keep up with. On the other side of this one-way bet were the financial markets. They looked at less dynamic economies, such as the United Kingdom and Italy, that were tying themselves to the deutsche mark and saw a way to make money. The only way to maintain a currency peg is to either defend it with foreign exchange reserves or deflate your wages and prices to accommodate it. To defend a peg you need lots of foreign currency so that when your currency loses value (as it will if you are trying to keep up with the Germans), you can sell your foreign currency reserves and buy back your own currency to maintain the desired rate. But if the markets can figure out how much foreign currency you have in reserve, they can bet against you, force a devaluation of your currency, and pocket the difference between the peg and the new market value in a short sale. George Soros (and a lot of other hedge funds) famously did this to the European Exchange Rate Mechanism in 1992, blowing the United Kingdom and Italy out of the system. Soros could do this because he knew that there was no way the United Kingdom or Italy could be as competitive as Germany without serious price deflation to increase cost competitiveness, and that there would be only so much deflation and unemployment these countries could take before they either ran out of foreign exchange reserves or lost the next election. Indeed, the European Exchange Rate Mechanism was sometimes referred to as the European “Eternal Recession Mechanism,” such was its deflationary impact. In short, attempts to maintain an anti-inflationary currency peg fail because they are not credible on the following point: you cannot run a gold standard (where the only way to adjust is through internal deflation) in a democracy.

The basic reason for Germany’s lack of competitiveness, however, was not political in this crude sense. The basic problem was the uncompetitive exchange rate of the Reichsmark. As we have seen, this fundamental misalignment had first emerged in the autumn of 1931 after the devaluation of sterling. The second shock had come in April 1933 with the devaluation of the dollar. By 1933 only 20 per cent of world trade was still conducted between countries with currencies fixed in terms of gold. Germany’s failure to follow this trend meant that the prices of its exports, translated at the official exchange rate of the Reichsmark, were grossly uncompetitive. This was not a matter of particular industries or sectors. It was not a matter of high wages, or excessive taxes and social levies. At prevailing exchange rates, the entire system of prices and wages in Germany was out of line with that prevailing in most of the rest of the world economy.

Despite the enormous evening sky spreading over most of the canvas, its moon no more than a tarnished coin, dull and flat, in a devalued currency; despite the trees, so dark themselves, stretching upward like supplicants, utterly leafless; despite what could be a face, rinsed of feeling, aimed in their direction, the two small figures at the bottom of this picture glow bravely in their carnival clothes, as if the whole darkening world were dimming its lights for a party.

From a monetary competition perspective, keeping gold reserves is a perfectly rational decision. Keeping reserves in foreign governments' easy money only will cause the value of the country's currency to devalue along with the reserve currencies, while the seigniorage accrues to the issuer of the reserve currency, not the nation's central bank. Further, should central banks sell all their gold holdings (estimated at around 20% of global gold stockpiles), the most likely impact is that gold, being highly prized for its industrial and aesthetic uses, would be bought up very quickly with little depreciation of its price and the central banks would be left without any gold reserves.

A penny for your thoughts? Many of us devalue the power of our thoughts. We fail to fully comprehend that our thoughts are highly influential things that have the power to shape our very lives. Our greatest and smallest achievements all begin with a simple thought. A thought can shape our minds, our emotions, our bodies and ultimately our circumstances. Our thoughts have a huge bearing on our health, our relationships, our spiritual well being, right along with our successes and failures. Our thoughts are valuable commodities that have spiritual influences that attract blessings as well as misfortune. As “mystical” as it may sound, the old adage “What we think about…We bring about!” is absolutely true. Negative thoughts spawn negative results, positive thoughts spawn positive results. Again, God’s Word gives us perfect advice on how we should think. Philippians 4:8 says “Finally, brothers, whatever is true, whatever is honorable, whatever is just, whatever is pure, whatever is lovely, whatever is commendable, if there is any excellence, if there is anything worthy of praise, think about these things.” If we do I promise you…there will be no currency, on this earth, great enough to purchase our thoughts. ~Jason Versey

Thought is measured by a different rule, and puts us in mind, rather, of those souls whose number, according to certain ancient myths, is limited. There was in that time a limited contingent of souls or spiritual substance, redistributed from one living creature to the next as successive deaths occurred. With the result that some bodies were sometimes waiting for a soul (like present-day heart patients waiting for an organ donor). On this hypothesis, it is clear that the more human beings there are, the rarer will be those who have a soul. Not a very democratic situation and one which might be translated today into: the more intelligent beings there are (and, by the grace of information technology, they are virtually all intelligent), the rarer thought will be. Christianity was first to institute a kind of democracy and generalized right to a personal soul (it wavered for a long time where women were concerned). The production of souls increased substantially as a result, like the production of banknotes in an inflationary period, and the concept of soul was greatly devalued. It no longer really has any currency today and it has ceased to be traded on the exchanges. There are too many souls on the market today. That is to say, recycling the metaphor, there is too much information, too much meaning, too much immaterial data for the bodies that are left, too much grey matter for the living substance that remains. To the point where the situation is no longer that of bodies in search of a soul, as in the archaic liturgies, but of innumerable souls in search of a body. Or an incalculable knowledge in search of a knowing subject.

Economics today creates appetites instead of solutions. The western world swells with obesity while others starve. The rich wander about like gods in their own nightmares. Or go skiing in the desert. You don’t even have to be particularly rich to do that. Those who once were starving now have access to chips, Coca-Cola, trans fats and refined sugars, but they are still disenfranchized. It is said that when Mahatma Gandhi was asked what he thought about western civilization, he answered that yes, it would be a good idea. The bank man’s bonuses and the oligarch’s billions are natural phenomena. Someone has to pull away from the masses – or else we’ll all become poorer. After the crash Icelandic banks lost 100 billion dollars. The country’s GDP had only ever amounted to thirteen billion dollars in total. An island with chronic inflation, a small currency and no natural resources to speak of: fish and warm water. Its economy was a third of Luxembourg’s. Well, they should be grateful they were allowed to take part in the financial party. Just like ugly girls should be grateful. Enjoy, swallow and don’t complain when it’s over. Economists can pull the same explanations from their hats every time. Dream worlds of total social exclusion and endless consumerism grow where they can be left in peace, at a safe distance from the poverty and environmental destruction they spread around themselves. Alternative universes for privileged human life forms. The stock market rises and the stock market falls. Countries devalue and currencies ripple. The market’s movements are monitored minute by minute. Some people always walk in threadbare shoes. And you arrange your preferences to avoid meeting them. It’s no longer possible to see further into the future than one desire at a time. History has ended and individual freedom has taken over. There is no alternative.

Inflation is not caused by increasing the fiduciary circulation. It begins on the day when the purchaser is obliged to pay, for the same goods, a higher sum than that asked the day before. At that point, one must intervene. Even to Schacht, I had to begin by explaining this elementary truth: that the essential cause of the stability of our currency was to be sought for in our concentration camps. The currency remains stable when the speculators are put under lock and key. I also had to make Schacht understand that excess profits must be removed from economic circulation. I do not entertain the illusion that I can pay for everything out of my available funds. Simply, I've read a lot, and I've known how to profit by the experience of events in the past. Frederick the Great, already, had gradually withdrawn his devaluated thalers from circulation, and had thus re established the value of his currency. All these things are simple and natural. The only thing is, one mustn't let the Jew stick his nose in. The basis of Jewish commercial policy is to make matters incomprehensible for a normal brain. People go into ecstasies of confidence before the science of the great economists. Anyone who doesn't understand is taxed with ignorance! At bottom, the only object of all these notions is to throw everything into confusion. The very simple ideas that happen to be mine have nowadays penetrated into the flesh and blood of millions. Only the professors don't understand that the value of money depends on the goods behind that money. One day I received some workers in the great hall at Obersalzberg, to give them an informal lecture on money. The good chaps understood me very well, and rewarded me with a storm of applause. To give people money is solely a problem of making paper. The whole question is to know whether the workers are producing goods to match the paper that's made. If work does not increase, so that production remains at the same level, the extra money they get won't enable them to buy more things than they bought before with less money. Obviously, that theory couldn't have provided the material for a learned dissertation. For a distinguished economist, the thing is, no matter what you're talking about, to pour out ideas in complicated meanderings and to use terms of Sibylline incomprehensibility.

The manipulation of currency, throughout a feature of the colonial enterprise, reached its worst during the Great Depression of 1929–30, when Indian farmers (like those in the North American prairies) grew their grain but discovered no one could afford to buy it. Agricultural prices collapsed, but British tax demands did not; and cruelly, the British decided to restrict India’s money supply, fearing that the devaluation of Indian currency would cause losses to the British from a corresponding decline in the sterling value of their assets in India. So Britain insisted that the Indian rupee stay fixed at 1 shilling sixpence, and obliged the Indian government to take notes and coins out of circulation to keep the exchange rate high. The total amount of cash in circulation in the Indian economy fell from some 5 billion rupees in 1929 to 4 billion in 1930 and as low as 3 billion in 1938. Indians starved but their currency stayed high, and the value of British assets in India was protected.

All the while, traditional banks can take as long as a week and charge as much as $50 for an international money transfer; they can refuse service to businesses they disagree with or simply defraud clients, and governments can devalue local currencies with reckless printing of new money to finance spending, or they can ban foreign currency purchases and limit withdrawals.

The Bible is saying: Only if Jesus is your treasure are you truly rich, for he is the only currency that cannot be devalued. And only if he is your Savior are you truly successful, for status with him is the only status that can't be lost.

The goal of printing money is to reduce debt burdens, so the most important thing for currencies to devalue against is debt (i.e., increase the amount of money relative to the amount of debt, to make it easier for debtors to repay).

Right now, over 90 percent of the world’s currency is digital. It exists as a numeric concept: Money has value only because we agree that it’s valuable. The value is illusory and dependent on our collective willingness to agree that the illusion is real. And for that illusion to work in perpetuity, money needs to be somewhat finite. If it were possible for a random citizen to flawlessly photocopy a $1 bill ten thousand times, it would not create ten thousand new dollars of equal value. It would imperceptibly devalue all available currency, and if fourteen thousand people did the same thing every minute, the perceived value of a $1 bill would microscope to nothing. This is what file sharing did to music. Napster did not make people like songs less. It probably made people like songs more. But it turned the larger concept of music into an abstraction that signified less.

In the years immediately following the war, Keynes’s attention focused on two things: the international financial disorganization which the war had brought about, and which the peacemaking at Versailles had worsened, and the deterioration in the equilibrium terms of trade between Europe and the New World. At existing productivity levels, Europeans would have to accept a lower standard of life than before the war, since a given quantity of manufactured exports was buying less food and raw materials from abroad than hitherto. This range of concerns can be followed in Keynes’s contributions to the Manchester Guardian Commercial’ Reconstruction Supplements, the twelve issues of which he edited between 1922 and 1923. The ‘neo-Malthusian’ strand in Keynes’s thinking has not been sufficiently noticed. It was at the heart of his argument for a devaluation of the main European currencies against the dollar.

Once again, I listened as people told me I was nuts. Emerging markets were largely considered untouchable by foreign investors at the time. They were still under the shadow of loan defaults from the 1980s, and Mexico’s recent Tequila Crisis (the devaluation of the peso) had triggered widespread currency devaluation across Latin America. To top it off, many emerging market countries were reeling from the Asian financial crisis in 1997 and Russia’s default in 1998. Emerging markets at the time were not for the faint of heart. For me, of course, that presented an environment with no competition for assets.

The lesson that a nation cannot devalue its way to prosperity eluded Nixon, Connally, Peterson and the stock market in late 1971 as it had their predecessors during the Great Depression. It seemed a hard lesson to learn.

Devaluation and currency wars never produce either the growth or the jobs that are promised, but they reliably produce inflation.

Currency wars begin in an atmosphere of insufficient internal growth. The country that starts down this road typically finds itself with high unemployment, low or declining growth, a weak banking sector and deteriorating public finances. In these circumstances it is difficult to generate growth through purely internal means and the promotion of exports through a devalued currency becomes the growth engine of last resort.

In the marketplace of thoughts, ideas are the currency that never devalues, always compounding in worth; when nurtured with belief and passion, blossom into realities far grander than the imaginings they sprang from

Family. Family said it all. Fifty years later, the name’s the same. Family is the currency that never devalues. Family is beyond value. The priceless thing that enriches our lives and our work.

Yet Lewis’s academic reputation at Oxford was not well served in this way. He had unwisely declared himself to be a “Fellow of Magdalen College, Oxford” on the book’s title page. There was much grumbling and sniping in Magdalen’s Senior Common Room about the devaluation of the academic currency by such a rampantly populist book. Lewis won the hearts and minds of many through this book; yet he also alienated many whose support he might need if he were to secure an Oxford chair in the future.

The screen uses violence in such a customary fashion that it seems somehow like a devalued currency, which is at one and the same time provoking and conventional.

Of the 53 central banks tracked by Bloomberg, 19 have dropped their benchmark interest rates in the past three months. Low rates encourage consumers to borrow and spend, increasing domestic consumption. They also devalue currencies, making exports cheaper. That's good for the countries selling but hard on countries flooded with cheap products.

Along with the opening up of economies, neo-liberal policies involve privatization of public sector enterprises, including socially critical areas such as water supply, health and education. This is often done under the garb of cutting government spending and balancing the budget. They also normally force a devaluation of the poor, borrowing country’s currency, as well as asking for ‘flexible labour markets’ (which effectively means workers can be hired and fired at will).

A standard IMF package often involves, among other things, the following “conditionalities”: 1) devaluation of currency; 2) tight monetary and fiscal constraints; 3) budget cuts, with sharply reduced public expenditures; 4) a wage freeze; and 5) sharp reduction or elimination of import and price subsidies.

At that same time, the Communist regime let the inflation run its course and then, devalued the currency. They issued a new kind of lei. Everybody could exchange 80,000 lei for 20 new lei. The day before the exchange, I had 2 million lei. For that amount, I bought two pairs of hand crocheted summer gloves; there was nothing else available. I would have preferred to purchase a kilo meat, but that was out of the question, unrealistic thinking.

In July 1997, the Thai currency, the baht, was forced to devalue, initiating a startling series of Mexico-like crises that over the next few months engulfed the economies of Thailand, Indonesia, Malaysia, and the mighty South Korea.

Justice is the recognition of the fact that you cannot fake the character of men as you cannot fake the character of nature, that you must judge all men as conscientiously as you judge inanimate objects, with the same respect for truth, with the same incorruptible vision, by as pure and as rational a process of identification—that every man must be judged for what he is and treated accordingly, that just as you do not pay a higher price for a rusty chunk of scrap than for a piece of shining metal, so you do not value a rotter above a hero—that your moral appraisal is the coin paying men for their virtues or vices, and this payment demands of you as scrupulous an honor as you bring to financial transactions—that to withhold your contempt from men’s vices is an act of moral counterfeiting, and to withhold your admiration from their virtues is an act of moral embezzlement—that to place any other concern higher than justice is to devaluate your moral currency and defraud the good in favor of the evil, since only the good can lose by a default of justice and only the evil can profit—and that the bottom of the pit at the end of that road, the act of moral bankruptcy, is to punish men for their virtues and reward them for their vices, that that is the collapse to full depravity, the Black Mass of the worship of death, the dedication of your consciousness to the destruction of existence.

When doubts about the survival of the single currency surfaced in 2010, the financial markets started to view countries on Europe’s periphery, from Ireland to Greece, as over-indebted and uncompetitive. Bound by euro-fetters, members of the Eurozone could not regain competitiveness by devaluing their currencies. Instead, interest rates across the region diverged, with highly indebted countries, including Italy and Greece, suddenly forced to pay hefty risk premiums. Meanwhile German bond yields headed into negative territory. Deflation beckoned. Deleveraging was in order. To bring down labour costs, the PIIGS were going to have to embrace deep structural reforms. Unemployment in Spain climbed to Great Depression levels. Schumpeter’s forces of creative destruction were about to be unleashed, big time.

There is also a risk in some markets of a significant devaluation of the local currency. For example, if the country experiences a financial crisis and devalues its currency to the point that your goods are no longer competitively priced, you can lose your market position overnight. There are no easy answers when it comes to getting paid for international sales but planning in advance beats learning hard lessons after the fact. Choose the solutions that work best for your company and prepare for the implications of those choices. The best strategy is to do the due diligence on your new customers.

I have good news and bad news. The good news is we will all soon be billionaires. The bad news is that by the time that day comes, the dollar will be so devalued that your billions may not purchase your weekly groceries.

Destroying family and its values by devaluing the currency and forcing both parents to work to pay bills and spending less time with their children will create a system where everyone will depend more on government and less on family. Welcome to modern day America!

To those who preach morals — I do not wish to promote any morality, but to those who do I give this advice: If you wish to deprive the best things and states of all honor and worth, then go on talking about them as you have been doing. Place them at the head of your morality and talk from morning to night of the happiness of virtue, the composure of the soul, of justice and immanent retribution The way you are going about it, all these good things will eventually have popularity and the clamor of the streets on their side; but at the same time all the gold that was on them will have been worn off by so much handling, and all the gold inside will have turned to lead Truly, you are masters of alchemy in reverse: the devaluation of what is most valuable. Why don’t you make the experiment of trying another prescription to keep from attaining the opposite of your goal as you have done hitherto? Deny these good things, withdraw the mob’s acclaim from them as well as their easy currency; make them once again concealed secrets of solitary souls; say that morality is something forbidden That way you might win over for these things the kind of people who alone matter: I mean those who are heroic. But to that end there has to be a quality that inspires fear and not, as hitherto, nausea Hasn’t the time come to say of morality what Master Eckhart said: “I ask God to rid me of God.

When the debt bills come due, governments have no good options. The kinds of harsh remedies available—devaluing currencies and cutting off the social safety net, for example—often lead to all manner of unintended consequences, including market crashes, authoritarian populism, and even the quiet sale of missile and nuclear technologies to the highest rogue bidders.

Step 6: When Filofax grew enormously in the 1980s as an expensive, aspirational product, the absence of a generic niche description became a problem for the leader. People began to use ‘filofax’ to describe the category, which meant that every competitor could describe their product as a filofax (note the lower case f ). In 1986 David Collischon wisely coined the term ‘personal organiser’ to describe the category and encouraged everyone to use the term. Marketing experts are adamant that it is easier for us to think first about a category generally, and then about the brand. ‘I need a personal organiser to keep all my bits of paper.What brand should I ask for in the shop? Well, Filofax is the best known.’ This is an easier and more natural way of thinking than, ‘I need a Filofax.’ The clear benefit of a personal organiser was that it helped people be better organised . If the term ‘personal organiser’ had not gained widespread currency the benefit of the new category would have been much less clear, and Filofax’s brand name would have become devalued. Contrast the confusion caused in the electronic-organiser niche. When this developed in the 1990s, the leading brand was PalmPilot. But what was the category name? As Al and Laura Ries comment, ‘Some people call the Palm an electronic organiser. Others call the Palm a handheld computer. And still others, a PDA (personal digital assistant). All of these names are too long and complicated. They lack the clarity and simplicity a good category name should possess. If . . . a personal computer that fits on your lap is called a laptop computer, then the logical name for a computer that fits in the palm of your hand is a palm computer . . . Of course, Palm Computer pre-empted Palm as a brand name, leaving a nascent industry struggling to find an appropriate generic name . . . Palm Computer should have been just as concerned with choosing an appropriate generic name as it was in choosing an appropriate brand name.’9

German reunification not only caused unemployment to rise even further, but also placed an enormous strain on the state budget. The disintegration of the Eastern bloc put further pressure on German capitalism, for it meant not only new markets for German products, but also new geographical opportunities to relocate production. This proved extremely attractive for German companies, which were able to find enough qualified workers at significantly lower wages without modifying their training systems significantly. The introduction of the euro provided Germany with the medium-term advantage that other European countries could no longer counter German wage pressure by devaluating their own currencies. In the end, Germany’s export orientation produced large export surpluses at home, but also caused growing international trade imbalances.

Peace. Warm yourself, warrior, while I tell you of peace. History is unerring, and even the least observant mortal can be made to understand, through innumerable repetition. Do you see peace as little more than the absence of war? Perhaps, on a surface level, it is just that. But let me describe the characteristics of peace, my young friend. A pervasive dulling of the senses, a decadence afflicting the culture, evinced by a growing obsession with low entertainment. The virtues of extremity — honour, loyalty, sacrifice — are lifted high as shoddy icons, currency for the cheapest of labours. The longer peace lasts, the more those words are used, and the weaker they become. Sentimentality pervades daily life. All becomes a mockery of itself, and the spirit grows… restless. Is this a singular pessimism? Allow me to continue with a description of what follows a period of peace. Old warriors sit in taverns, telling tales of vigorous youth, their pasts when all things were simpler, clearer cut. They are not blind to the decay all around them, are not immune to the loss of respect for themselves, for all that they gave for their king, their land, their fellow citizens. The young must not be abandoned to forgetfulness. There are always enemies beyond the borders, and if none exist in truth, then one must be fashioned. Old crimes dug out of the indifferent earth. Slights and open insults, or the rumours thereof. A suddenly perceived threat where none existed before. The reasons matter not — what matters is that war is fashioned from peace, and once the journey is begun, an irresistible momentum is born. The old warriors are satisfied. The young are on fire with zeal. The king fears yet is relieved of domestic pressures. the army draws its oil and whetstone. Forges blast with molten iron, the anvils ring like temple bells. Grain-sellers and armourers and clothiers and horse-sellers and countless other suppliers smile with the pleasure of impending wealth. A new energy has gripped the kingdom, and those few voices raised in objection are quickly silenced. Charges of treason and summary execution soon persuade the doubters. Peace, my young warrior, is born of relief, endured in exhaustion, and dies with false remembrance. False? Ah, perhaps I am too cynical. Too old, witness to far too much. Do honour, loyalty and sacrifice truly exist? Are such virtues born only from extremity? What transforms them into empty words, words devalued by their overuse? What are the rules of the economy of the spirit, that civilization repeatedly twists and mocks? Withal of the Third City. You have fought wars. You have forged weapons. You have seen loyalty, and honour. You have seen courage and sacrifice. What say you to all this?" "Nothing," Hacking laughter. "You fear angering me, yes? No need. I give you leave to speak your mind." "I have sat in my share of taverns, in the company of fellow veterans. A select company, perhaps, not grown so blind with sentimentality as to fashion nostalgia from times of horror and terror. Did we spin out those days of our youth? No. Did we speak of war? Not if we could avoid it, and we worked hard at avoiding it." "Why?" "Why? Because the faces come back. So young, one after another. A flash of life, an eternity of death, there in our minds. Because loyalty is not to be spoken of, and honour is to be endured. Whilst courage is to be survived. Those virtues, Chained One, belong to silence." "Indeed. Yet how they proliferate in peace! Crowed again and again, as if solemn pronouncement bestows those very qualities upon the speaker. Do they not make you wince, every time you hear them? Do they not twist in your gut, grip hard your throat? Do you not feel a building rage—" "Aye. When I hear them used to raise a people once more to war.

In the 1860s, during its civil war, the US suspended gold convertibility and printed paper money (known as “greenbacks”) to help monetize war debts. Around the time the US returned to its gold peg in the mid-1870s, a number of other countries joined the gold standard; most currencies remained fixed against it until World War I. Major exceptions were Japan (which was on a silver-linked standard until the 1890s, which led its exchange rate to devalue against gold as silver prices fell during this period) and Spain, which frequently suspended convertibility to support large fiscal deficits. During World War I, warring countries ran enormous deficits that were funded by central banks’ printing and lending of money. Gold served as money in foreign transactions, as international trust (and hence credit) was lacking. When the war ended, a new monetary order was created with gold and the winning countries’ currencies, which were tied to gold. Still, between 1919 and 1922 several European countries, especially those that lost the war, were forced to print and devalue their currencies. The German mark and German mark debt sank between 1920 and 1923. Some of the winners of the war also had debts that had to be devalued to create a new start. With debt, domestic political, and international geopolitical restructurings done, the 1920s boomed, particularly in the US, inflating a debt bubble. The debt bubble burst in 1929, requiring central banks to print money and devalue it throughout the 1930s. More money printing and more money devaluations were required during World War II to fund military spending. In 1944–45, as the war ended, a new monetary system that linked the dollar to gold and other currencies to the dollar was created. The currencies and debts of Germany, Japan, and Italy, as well as those of China and a number of other countries, were quickly and totally destroyed, while those of most winners of the war were slowly but still substantially depreciated. This monetary system stayed in place until the late 1960s. In 1968–73 (most importantly in 1971), excessive spending and debt creation (especially by the US) required breaking the dollar’s link to gold because the claims on gold that were being turned in were far greater than the amount of gold available to redeem them. That led to a dollar-based fiat monetary system, which allowed the big increase in dollar-denominated money and credit that fueled the inflation of the 1970s and led to the debt crisis of the 1980s. Since 2000, the value of money has fallen in relation to the value of gold due to money and credit creation and because interest rates have been low in relation to inflation rates. Because the monetary system has been free-floating, it hasn’t experienced the abrupt breaks it did in the past; the devaluation has been more gradual and continuous. Low, and in some cases negative, interest rates have not provided compensation for the increasing amount of money and credit and the resulting (albeit low) inflation.

Integrity is the moral currency that never devalues; always choose to do the right thing. Character is forged in the crucible of choices, and the finest character emerges when one consistently does what's right

However, from 2009 financial markets turned their attention away from banks to governments and, more particularly, their debts. In particular, markets became increasingly concerned that member states of the Eurozone were holding excessive amounts of sovereign (i.e. government) debt, to the extent that it potentially compromised their ability either to service that debt or to maintain the solvency of national banking systems, especially with national currency devaluation no longer being an option.

A bank that can’t deliver enough hard money to meet the claims being made on it is in trouble whether it is a private bank or a central bank, though central banks have more options than private banks. That’s because a private bank can’t print the money or change the laws to make it easier to pay their debts, while some central banks can. Private banks must either default or get bailed out by the government when they get into trouble, while central banks can devalue their claims (e.g., pay back 50–70 percent) if their debts are denominated in their national currency. If the debt is denominated in a currency that they can’t print, then they too must ultimately default.

devalued the yuan by a third, from 5.8 yuan per dollar to 8.7 yuan per dollar. By the middle of 1995, a new hard peg had been established at 8.3 yuan per dollar. This exchange rate would be rigidly maintained until the middle of 2005. The result was that the yuan became progressively undervalued relative to economic fundamentals. China had tied its currency to the dollar even though productivity was growing far slower in the United States than in China, or much of the rest of the world. This made Chinese exports increasingly cheap for foreign consumers and simultaneously deprived Chinese consumers of the ability to buy everything their labor had earned. It was a transfer from China’s consumers that subsidized the profits

The Bible is saying: Only if Jesus us your treasure are you truly rich, for He is the only currency that cannot be devalued. And only if He is your Saviour are you truly successful, for status with Him is the only status that can't be lost.

MANAGING THE CURRENCY WELL-MANAGED Policy makers bluff, conveying that they will never allow the currency to weaken much. When they do devalue, it’s a surprise. The devaluation is large enough that the people are no longer broadly expecting the currency weakening more (creating a two-way market). POORLY MANAGED Policy makers are widely expected to allow a currency weakness, causing more downward pressure on the currency and higher interest rates. The initial devaluation is small, and further devaluations are needed. The market expects this, causing higher interest rates and inflation expectations. CLOSING EXTERNAL IMBALANCES WELL-MANAGED Tight monetary policy causes domestic demand to contract in line with the fall in incomes. Policy makers create incentives for investors to stay in the currency (i.e., higher interest rates that compensate for risk of currency depreciation). POORLY MANAGED Policy makers favor domestic conditions, and monetary policy is too loose, putting off domestic pain and stoking inflation. Policy makers attempt to stop the outflow of capital with capital controls or other restrictive measures. SMOOTHING THE DOWNTURN WELL-MANAGED Use reserves judiciously to smooth the withdrawal of foreign capital while working to close imbalances. POORLY MANAGED Rely on reserve sales to maintain higher levels of spending. MANAGING BAD DEBTS/DEFAULTS WELL-MANAGED Work through debts of entities that are over-indebted, making up the gap with credit elsewhere. POORLY MANAGED Allow disorderly defaults that lead to increased uncertainty and capital flight.

It's deflation of our value, devaluation through a system of paper trails created for deeper entanglement by inflating our minds with lies. It sickens me to my stomach but what more can I do? Only spread the message of Jehovah and His Son like the flu. I've been given the key of knowledge, it's true.

In Riyadh, King Saud’s brothers became convinced that his foreign policy bungling, combined with his economic mismanagement, was putting their family at risk. The elder brothers agreed that Saud should keep his throne but relinquish all executive authority to Faisal. King Saud accepted this arrangement in March 1958. Crown Prince Faisal became prime minister, appointed himself finance minister, and began to balance the kingdom’s budget. He cut spending across the board, suspended development projects, canceled agriculture subsidies, delayed payments to contractors and tribal sheikhs, imposed import controls on luxury goods, and devalued the riyal. He reduced stipends for royal family members and obtained new loans from Aramco as well as leading merchants, including Osama bin Laden’s father Mohammed.24 At the same time, oil production increased by more than 50 percent from 1 million barrels a day in 1957 to 1.6 million barrels a day in 1962.25 The kingdom’s budget was balanced and its currency stabilized. The inflation rate fell sharply. By 1960, Faisal’s austerity had reduced not only the national debt, but also his own popularity with the tribes, merchants, and princes.

Page 10-11: Because of America's vigorous growth, and because the dollar plays a special role in the international economy, foreigners have been willing to finance the nation's imports and consumption. The bad news is that America's trade and investment deficits with the rest of the world (i.e., the amounts by which it is spending more than it is producing and borrowing more than it is lending) are growing so fast that they threaten to place the United States in the position of Thailand in 1997. That is to say, America's debts to the rest of the world may soon become large enough that its creditors could start wondering about the nation's ability to repay. Should foreigners lose faith in America's creditworthiness, they may start dumping dollars the way they dumped Thai baht. In that case, the American consumer would face significant belt-tightening to enable to country to start paying the debt down. Alternatively, the Federal Reserve could raise interest rates very high. This step would aim at persuading foreigners to keep up their lending by offering them higher rates of return on their loans, but it would also slow down the domestic economy by making the cost of money much more expensive for businesses and consumers. It would also add greatly to the total debt that would have to be repaid. ... A significant U.S. slowdown, therefore, would most likely leave the Japanese and Europeans (plus the Chinese and the rest of Asia and Latin America) with ever greater stockpiles of goods that no one could or would buy. These products would either languish on the shelf, or global price wars would break out, with each country trying to undercut the other in a frantic attempt to trim losses. Nations would either offer their goods for sale for much less than their production costs, or they would devalue their currencies, making them cheaper relative to other currencies. Thus their goods would automatically sell for less in foreign markets, and foreign goods would automatically become more expensive in their market.

For as long as there have been creditors and debtors—which is a darn long time—creditors have tried to protect the value of the currency and debtors have sought to devalue it.

To nations holding large amounts of that particular currency in their reserve vaults, the effects of the devaluation is the same as if the vaults had been burglarized.

young adults in China who have spent so much play money, or “QQ coins,” on magical swords and other powerful game objects that the People’s Bank of China intervened to prevent the devaluation of the yuan, China’s real-world currency.2

In the case of France, her interest was twofold. In the first place, French national pride was closely tied to the currency; to the French way of thinking, a strong nation should have a strong currency. The policy of the franc fort, driven primarily by François Mitterrand (president from 1981 until 1995), was a reflection of this grandiose and nationalistic view of the currency. This explains how this policy was maintained against all odds, often with painful consequences, even when economic reality required a devaluation of the franc.

The failures and consequent political costs of devaluing the franc brought the French leadership to the conviction that subsuming their national currency within the project of a common European currency was the way to elude those devaluation costs in the future. Knowing that the battle between the franc and the deutschmark had been lost, France saw in the euro the opportunity to regain control of its monetary affairs. She believed, naively, that she was going to have political control over the new common currency while taking advantage of the strength conferred by an ECB conceived as a carbon copy of the reputable German Central Bank. This nationalistic vision of the currency is the frame of reference for understanding the almost obsessive determination of France, from the time of General de Gaulle onward, to neutralise the monetary hegemony of the US dollar.