HJ: This bombshell article was release by CNBC on Friday. The stir in the blogosphere is that it is part of the ramp up to a global currency reset and disclosure. It is part of the subtle and slow conditioning of the general populace to the idea that things are about to change– big time. I can only hope that this is exactly what it is. However, the speed with these changes come remains to be seen, although signs and certain oracles seem to be pointing to the notion that it is now! – Truth
Friday, 27 Jul 2012 | 5:27 AM ET
By: Lisa Oake
Anchor, CNBC Asia-Pacific
As the investment world eagerly awaits more stimulus, a debate on a previously unthinkable topic has started to emerge – can fiat currencies survive round after round of debasement?
A fiat currency derives its worth from the issuing government – it is not fixed in value to any objective standard. That means central banks can print as much money as they want. If an economy is struggling, injecting more notes into the system juices activity but lowers the value of the currency in question.Some heavy hitters say the answer is no.
With major central banks all desperate to stimulate their economies, some say currencies have entered a dangerous new phase often described as a race to the bottom.
Mark Mobius, Executive Chairman of Templeton Emerging Markets Group, says investors will soon start to demand fiat currencies be backed by gold or other hard assets.
“It’s already happening, you’re beginning to see that trend with central banks stocking up on gold. The estimate is that at least half of the buying is central bank buying. They are looking to the day when they can say okay, our currency is backed by gold and therefore we’re a strong country,” Mobius told CNBC Asia.
Mobius has $50 billion under management.
Read the rest of the article here: CNBC