Bob Chapman summarizes the situation:
It is now clear to the most casual observer that the world’s monetary and financial system cannot function without massive amounts of additional money and credit. That means the system no longer functions the way it should. Europe really doesn’t know what to do and neither does the Fed and the Bank of England. The exception is throwing more money at the problem and keeping interest rates near zero indefinitely. Many US, UK and European banks are insolvent. The real estate market continues to deflate throughout Europe with the exception of Germany, which never really rose in price. Again, there are no solutions offered to solve this problem. Just as there are no solutions elsewhere. These conditions tell us the euro has serious problems to face as does the pound and the US dollar. You have to then say to yourself against what. Each currency has its own problems, thus, the only alterative is to measure each currency versus gold and silver. These are the true benchmarks, and when compared over the last 11-1/2 years, versus nine major currencies gold and silver on average annually have appreciated more than 20%. That tells you anyone holding currencies has been a major loser.
A currency debacle has been in progress for the last decade. It has not been readily apparent when viewing currency pairs because both sides of the trade are deteriorating. If both deteriorate at the same rate, the exchange rate appears constant. One should not conclude that either or both is holding value. That result is achieved even if both are losing 50% per year. No major currency has reached that rate of decline — yet!
Even currencies that appear to be rising are declining. They are merely declining slower than the comparative currency.
Beware of fiat currencies. Not a one of them is safe!