Nobody wants a strong currency. That’s the central theme over the last 20 years and especially since the emergence of the credit crisis and the ensuing global economic recession – the deepest since 1982.

The Swiss franc is now the latest victim of this year’s currency wars and the Japanese yen will follow shortly as the global exchange rate mechanism comes undone in spectacular fashion. On Thursday, the Swiss National Bank (SNB) stated that it sought “quantitative easing” in order to depress the franc and keep deflation from accelerating. The franc thereafter tumbled 3% against the dollar.

In their quest to remain export competitive, global currencies continuously devalue against each other, causing all sorts of trade imbalances, currency volatility and, ultimately, inflationary consequences. That’s the history of foreign exchange markets since Nixon broke the gold window in August 1971.

With painful regularity, currencies have devalued violently vis-à-vis the dollar since July 2008 when the buck emerged as a false “safe haven” among global investors as global de-leveraging blew wide open. The dollar, of course, is not a “safe haven” but instead the recipient of massive inflows by institutional investors seeking to raise liquidity and meet almost unprecedented investor redemptions. This entire process, a phenomenon in currency markets, has indeed pushed the dollar to multi-year highs against a range of currencies everywhere – except Japan.

Last week, I mused about being disenchanted with paper currencies because they all seemed to be celebrating like a bunch of drunks – devaluing against each other and reducing our long-term inflation-adjusted purchasing power. The whole currency system is a joke with units everywhere down 10% or more over the last few months and in many cases, off more than 20% since last July. That’s not a prescription for global exchange rate stability. It’s a prescription for inflation.

I’m disappointed the Swiss relented to deflation. I also think the SNB was pressured heavily by the European Union (EU) to let some air out of the Swiss franc because regional economies in neighboring Eastern Europe are getting pounded – largely because of leveraged loans tied to the Swiss franc to fund domestic mortgages.

Now the Swiss join a parade of other currencies devaluing in order to stem deadly deflation. My argument last week for heading into the franc to protect my purchasing power has now been thrown out the window. No currency is worth its salt.

Over the last several years I’ve continuously recommended gold for long-term investors. It’s the only currency outside of the credit system that’s nobody else’s liability. It’s portable, liquid and, like the old adage goes, “an ounce still buys a man a good suit.”

Eventually, the Japanese will join the Swiss and depress the yen. Central banks haven’t been active in foreign exchange markets since 2004 before last week yet I suppose it’s only a matter of time before the Japanese begin a new round of intervention. The high yen is killing the Japanese economy.

In the end, the dollar will also join the bar and get slammed with other currencies. For me, gold remains at the forefront of monetary responsibility, inflation protection and, above all, truth in a world duped by fiat paper.