Physical gold and silver protect nicely against a crashing currency.
And the people in Kazakhstan, who think they are protected by having their money in dollar accounts, will one day be wiped out.
– Currency Wars Continue As Kazakh Currency Crashes 25% After Peg Abandoned (ZeroHedge, Aug 20, 2015):
On Tuesday we remarked on the increasingly perilous plight of yet another country whose economy has come under increased pressure from plunging oil prices and China’s move to devalue the yuan: Kazakhstan.
Just one day after allowing the tenge to fall sharply in the interbank market and no longer able to take the pain from falling crude prices, the country moved to a free float for the tenge overnight, causing the currency to plunge by a quarter.
The move is clearly a desperate attempt to preserve export competitiveness in the face of a falling rouble and a devalued yuan. This is the third time the country’s central bank has devalued the currency since 1999 – the last time was in February of 2014. Continue reading »