At present, we have the battle between deflation and inflation. Ultimately however, the Central Banks of the world will likely succeed in accomplishing an inflationary period to inflate away their debts. This includes the US and Western Europe. In turn, their currencies will feel much of the relative damage through depreciation (lower relative value), as the emerging economies due to the massive amounts of wealth they are creating, will realize a relative strenghening of their economies and therefore, the values of their currencies. Will this be a straight line unidiretional move? Of course not. It will go in fits and starts. But, until and unless the developed economies change their disastrous monetary policies, then the irresponsible western nations will relatively slip in value, confidence and relative wealth!

Brian