Since 2008 Global Financial Crisis, each country has been taking their "Rightful Step" to print. If is not enough, print more. Just keep simulating one way or the other, in all sort of forms. Call it currency war as you may like but they do not seem malices to me other than survival.
In recent events, neither do the Korean Crisis nor the Cyprus saving tax put a dent to the market sentiments. Instead Gold crumbles and break key support line which are suppose to be safety heaven but unfortunately offers no interests !
Cash in the market is now so high that people is desperate for returns to beat inflation. This can be seen from dividend counters driven to new low in yield with ever increasing prices.To add oil to fire, asia governments put more stringent constrain on property investment skewing the market further to concentrate on elsewhere.
The danger of holding cash may get us into serious trouble if the uneventful happens as this time round may not be "Cash is King" if the market reacts badly to the ample cash in the system. There seems nowhere to run for most.
The better recourse maybe to protect national currency from being adversely affected by others devaluation who will be most impacted. High score for Singapore and Australia dollars who do not depends on manufacturing exports mostly. Holding them maybe a mitigation plan against "hyperinflation" but i doubt anyone will escape unscathed.
And don't retire even if you can for the next few years.
13th April 2013