While Jim Rickards doesn’t have as much game as Master Yoda (he’s close), his discussion of the current currency war between the economic super powers of the world reminded me of an infamous quote from Stars Wars Episode II:
Obi-Wan Kenobi: I must admit that without the clones printing presses, it would not have been a victory.
Master Yoda: Victory? Victory, you say? Master Obi-Wan, not victory. The shroud of the Dark Side Debt Threat has fallen. Begun, the Clone Currency War has.
[cue Imperial March music here]
While it might sound corny, those who know the storyline of the Star Wars saga (or the Financial Blog Wars) know this quote marks a significant turning point in what is a modern day SciFi equivalent of a Greek Tragedy.
The whole dynamic of the dollar rallying, the U.S. being a safe haven, flight to quality and all that, it kinda reminds me of the scene in the Titantic when the ship is down at the bow, and Leo DiCaprio and Kate Winslet run to the back of the ship — you can call that a flight to quality because that was the higher part of the ship — but the problem is that it’s all going down together.
— Jim Rickards
If you’re not a Star Wars fan or can’t remember the scene, here’s a brief reminder for those who want to see the correlation.
It’s entirely possible I’m being far too negative and far superior minds than mine will resolve the currency war before more serious damage is inflicted, but rest assured, the currency war is taking place in areas of financial markets most people don’t follow, much less, understand the long term ramifications. Just because the mainstream nightly news won’t touch the story, it doesn’t mean the currency war isn’t taking place and all is hunky dory.