by Alasdair MacLeod
Gold Money
This is the third in a series of articles focused on the outlook for major currencies. The first concluded that the US dollar is already on the path of monetary hyperinflation. The second concluded that the euro system is close to collapse as a consequence of a combination of the failure of commercial banks and the TARGET2 settlement system, likely to collapse the currency itself.
With its systemic exposure to the Eurozone, sterling is likely to be a casualty of the failure of the euro system and shares the monetary hyperinflation characteristics of the dollar. The Bank of England is copying US monetary policies and will find it increasingly difficult to prevent the pound from escaping the same fate as the dollar.