Now that the peripheral eurozone countries can't borrow to buy BMWs and pharmaceuticals, Germany's export-driven growth is slowing down... this is all leading to a completely predictable conclusion, which is that Mario Draghi will soon have to put his printing press where his mouth is. "Whatever it takes" will turn out to mean a eurozone quantitative easing program that resembles those of the Fed and BoJ, though on an even bigger scale. The implicit (maybe explicit) goal will be to crater the euro.

...This will go on until, as Jim Rickards puts it, the world's governments figure out that competitive devaluation is a zero sum game and that the one thing they can all devalue against is gold. A "monetary reset" will result, with the major currencies once again becoming simply names for given amounts of gold -- at $10,000 an ounce.

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