Currency Wars

Gold Wars: U.S. Undermining Iranian Currency By Blocking Gold Imports

Mon, 20 May 2013 12:59:27 GMT

Source: maxkeiser.com --- Monday, May 20, 2013
The U.S. will now ban sales of gold by anyone to either the Iranian government or to Iranian citizens, a senior U.S. Treasury official said yesterday. Today’s AM fix was USD 1,376.75, EUR 1,069.15 and GBP 903.62 per ounce. Yesterday’s AM fix was USD 1,377.00, EUR 1,070.01 and GBP 904.32 per ounce. Cross Currency Table – (Bloomberg) Gold fell $6.00 or -0.43% yesterday to $1,386.70/oz and silver finished +0.71%. Nothing has changed regarding the positive fundamentals of the physical gold market. All that has changed is that the price of gold is again lower due to the machinations of technical traders and speculators. Paper gold sales are again trumping massive physical demand however this cannot go on for much longer and the patient will again be handsomely rewarded. U.S. markets are again having a wild party and all speculators are invited. Stocks are at an all-time high, the country is basking in its new found energy ‘independence,’ there is a perception that the housing market is showing green shoots of recovery and the great bellwether, the employment numbers, showed better than expected gains in April. Tragically, it appears, the U.S. and other investors are again borrowing to buy stocks, confident that prices can only go in only one direction. All of this euphoria can be traced to the monetary expansion policies of the U.S. Fed and across the sea to Europe to the Bank of England and the ECB, and over to Japan and the ‘la la l ...

R.T.M. : May 20th-24th > Vol 2-21st ed. ~ Currency wars continue......

Mon, 20 May 2013 12:52:02 GMT

Source: www.goldismoney2.com --- Monday, May 20, 2013
Jim Rogers to Moneynews: Fed's 'Artificial' Inflation Will 'End Badly' "There's this gigantic artificial flow of money floating into our economy, and this is going to end badly," asserts legendary investor Jim Rogers, chairman of Rogers Holdings. In an exclusive interview with Newsmax TV, Rogers says, "I don't know how long it will last. I don't see how it can last much more beyond this year." [Full Story] Related Stories Jim Rogers: Bernanke to Leave Fed to Avoid Policy 'Hangover' Jim Rogers: Euro Won't Survive as Currency War Rages On Dallas Fed Chief: QE Has Only Made 'Rich People Richer' Actavis Buying Warner Chilcott in $8.5 Billion Pharma Deal Yahoo Takes Big Leap With $1.1 Billion Deal for Tumblr ...

Currency Wars: Policy Dilemmas, Macroeconomic Rebalancing and the Implications for Institutional Investors

Sat, 18 May 2013 04:42:44 GMT

Source: topics.pionline.com --- Friday, May 17, 2013
As more countries face fiscal austerity and look to exports to sustain economic recovery, the risk of competitive Currency devaluations is real despite recent G7 and G20 pledges to let market forces determine exchange rates. At the same time, they have accepted that central bank policies focused on ... ...

Fred Bergsten Warns of Currency Wars

Fri, 17 May 2013 14:43:26 GMT

Source: www.europac.net --- Friday, May 17, 2013
Content Type: Newswire Source: Wall Street Journal Link: http://blogs.wsj.com/economics/2013/05/16/bergsten-warns-of-Currency-Wars-in-peterson-valedictory-speech/ Final Link: Fred Bergsten Warns of Currency Wars Wall Street Journal • May 17, 2013 ...

Bergsten Warns of Currency Wars in Peterson Valedictory Speech

Thu, 16 May 2013 20:39:25 GMT

Source: blogs.wsj.com --- Thursday, May 16, 2013
In his valedictory speech as the head of one of the most respected economic think tanks in the world, Fred Bergsten issued a clarion call about "a clear and present danger" that continuing "Currency Wars" represent to the U.S. economy, global trade and the international monetary system. ...

Currency Wars: The Latest

Thu, 16 May 2013 11:22:07 GMT

Source: goldnews.bullionvault.com --- Thursday, May 16, 2013
How money is being used to further national interests... read more ...

A New Chapter In Currency Wars – Russia Joins The Game

Tue, 14 May 2013 21:59:36 GMT

Source: goldsilverworlds.com --- Tuesday, May 14, 2013
So far, China and Japan have stealen the show when it comes to Currency Wars in 2013. China was first to announce several trading large agreements with trading partners. Although it has no short term impact on the US dollar (the world reserve Currency) there is a longer term fundamental impact associated with it. What follows are some snippets that show the most important of those agreements in the past couple of months. South Africa signed a raft of agreements with Russia and China in March to trade a variety of products and services ranging from maintenance for Russian helicopters in Africa to exchanges of solar and nuclear technology. (source: NECN.com ) South Korea said it agreed with China to allow banks in both countries to borrow funds from an existing swap arrangement to encourage trade settlement in local currencies. A 64 trillion won ($59 billion) swap line will be made available for loans to allow companies in both countries to settle deals in the won and yuan. (source: Bloomberg ) Australia and China reach a Currency trading agreement. “This is a huge advantage for Australia. Not only for our big businesses but also for our small and medium enterprises hat want to do business here. That’s good for Australian jobs and Australian growth.” (source: News.com ) Brazil and China could sign an agreement that allows for trade of up to $30 billion to be carried out in local currencies. The two countries, which are taking part ...

Guest Post: It’s Raining (men) Yen! Hallelujah! Dispatches from the Currency Wars (DAS)

Tue, 14 May 2013 15:09:40 GMT

Source: www.thedisciplinedinvestor.com --- Tuesday, May 14, 2013
Das has a great way of breaking down complex situations into bit sized chinks that are much easier to understand. He recently penned a piece that sheds some light on the problems with Currency debasement by developed countries when taken to an extreme. Good reading and something to consider now that the Yen has been [...] ...

The Latest Salvos in the Currency Wars

Tue, 14 May 2013 14:57:02 GMT

Source: openmarkets.cmegroup.com --- Tuesday, May 14, 2013
Recent action by central banks around the world has led to some increased volatility in major foreign exchange markets. This month has already seen rate cuts in Europe and Australia and the Yen sinking to a new multi-year low against the U.S. Dollar. While these central bank actions are meant to stimulate weakened global economies many are concerned that the increasingly easy monetary policies being adopted around the world may be setting the world’s largest economies on a path towards an environment of competitive devaluation. The first to take action this month was the European Central Bank. After a May 2 nd meeting the ECB responded to persistently weak economic data and sluggish growth with a long anticipated cut to benchmark interest rates. ECB president Mario Draghi announced that the rate would be lowered by 25 basis points to a new record low of 0.50 percent. Draghi’s comments suggested that there were several members of the ECB that pushed for an even larger cut. Draghi also reiterated that the ECB would stand ready to act if economic conditions continue to deteriorate. Smaller members of the Eurozone have already criticized the ECB for doing too little too late, and there is a serious concern that the recent rate cut will not be effective. Later this week the Eurozone will report their first quarter GDP numbers. Should this data look weak the ECB may feel pressure to purchase asset backed securities in a quantitative ea ...

The currency wars are heating up – here’s how to profit

Tue, 14 May 2013 09:42:00 GMT

Source: www.moneyweek.com --- Tuesday, May 14, 2013
With the world’s central bankers continuing to print money and cut interest rates, there seems to be no let-up in the Currency Wars. John Stepek explains what it means for your money, and how to profit. ...

G-7 to renew pledge against currency wars

Sat, 11 May 2013 11:02:57 GMT

Source: www.japanherald.com --- Saturday, May 11, 2013
AYLESBURY, ENGLAND - Financial chiefs from the Group of Seven advanced economies were set to wrap up their two-day meeting by pledging again to refrain from competitive Currency devaluations. The G-7 finance chiefs and central bank governors were expected Saturday to reaffirm their Feb. 12 statement, in which they agreed not to target exchange rates with fiscal and monetary policies. A similar ... ...

Protecting ETF Portfolios From the Currency Wars

Sat, 11 May 2013 10:30:00 GMT

Source: www.thestreet.com --- Saturday, May 11, 2013
NEW YORK (ETF Expert) -- The last week has witnessed a renewed interest in foreign equities. In spite of a deepening recession in Europe, questions about China's growth, declining worldwide demand for commodities and little evidence of a self-sustaining global economy, some investors are filling their suitcases with overseas shares. Valuation "wonks" might describe the phenomenon in simplistic terms; that is, investors obviously recognize the earnings yields are compelling. The problem with this assertion is the fact that price-to-earnings bargains relative to U.S. stocks have existed for at least two years. More likely, investors love activist central banks and they expect foreign central banks to lower rates and/or devalue currencies. Back in December, before many folks caught up with the trend, I discussed why a hedged investment in Japanese stocks had enormous potential. (See "A Foreign Stock ETF for a Rapidly Declining Currency." Since that time, WisdomTree Japan Hedged Equity has packed on an astronomical 41.5%. Similarly, one should not be surprised when declining foreign currencies help pique desire for foreign equities. Recently, the European Central Bank cut its target rate from 0.5% to 0.25%. The Bank of Australia also lowered its benchmark to 2.75%. New Zealand's central bank explained that it is actively intervening in its Currency markets to reduce the value of the New Zealand dollar. While Thailand has yet to act t ...

As yen hits 100 to US$, get ready for more currency wars

Sat, 11 May 2013 05:28:24 GMT

Source: teekhapan.wordpress.com --- Friday, May 10, 2013
Vivek Kaul Ushinawareta Nijūnen or the period of two lost decades for Japan(from 1990 to 2010) might finally be coming to an end. Or so it seems. And Japan has to thank Abenomics unleashed by its current Prime Minister Shinzo Abe for it. Abe has more or less bullied the Bank of Japan, the Japanese central bank, to go on an unlimited money printing spree, until it manages to create an inflation of 2%. The Japanese money supply is set to double over a two year period. And all this ‘new’ money that is being pumped into the financial system, will chase an almost similar number of goods and services, and thus drive up their prices. Or so the hope is. The target is to create an inflation of 2% and get people spending money again. When prices are rising or are expected to rise, people tend to buy stuff, because they don’t want to pay a higher price later (This of course is true to a certain level of inflation and doesn’t hold in the Indian case where retail inflation is greater than 10%). As people go out and shop, it helps businesses and in turn the overall economy. In an environment where prices are stagnant or falling, as has been the case with Japan for a while now, people tend to postpone purchases in the hope of getting a better deal. The situation where prices are falling is referred to as deflation. In 2012, the average inflation in Japan was 0%, which meant that prices neither rose nor they fell. In fact, in each of the three y ...

Abenomics Brings Currency Wars to G7 Talks

Sat, 11 May 2013 00:15:00 GMT

Source: www.scoop.co.nz --- Friday, May 10, 2013
Today’s AM fix was USD 1,449.25, EUR 1,114.12 and GBP 941.62 per ounce. Yesterday’s AM fix was USD 1,469.50, EUR 1,118.68 and GBP 944.59 per ounce. ...

Abenomics bring currency wars to G-7 talks

Fri, 10 May 2013 18:28:10 GMT

Source: www.resourceinvestor.com --- Friday, May 10, 2013
Abenomics in simple terms allows the nation’s Prime Minister to push its supportive Central Bank to increase the money supply by ramping up government printing presses, resulting in the yen dollar to break the ¥100 barrier. ...

Abenomics bring currency wars to G7 talks

Fri, 10 May 2013 16:29:00 GMT

Currency Wars: Winners and Losers

Fri, 10 May 2013 06:43:19 GMT

Source: www.moneyguruforum.com --- Thursday, May 09, 2013
Source: Merk InsightsWho is winning the Currency Wars? Our take on the greenback, yen, sterling, euro and gold:The U.S. dollar. All the great things a couple trillion dollars in quantitative easing can buy:The stock market is reaching new highs. Except that investors have a rather difficult time diversifying as stock prices are highly [...] More... ...

Currency Wars

Thu, 09 May 2013 20:46:01 GMT

Source: currencythoughts.com --- Thursday, May 09, 2013
Two themes are dominating Currency market life. One is disinflation. A funny thing happened on the way to the widely predicted explosion of inflation that market players feared would be the result of fiscal deficit spending and rapid growth in central bank balance sheets. Inflation rates have instead decelerated and been negative in a few [...] ...

Asian currency wars, exporting deflation and the house price bind

Thu, 09 May 2013 11:08:26 GMT

Source: ftalphaville.ft.com --- Thursday, May 09, 2013
Bank of Korea has done its bit to stoke the Currency Wars… Although they insist that it’s not. From BAML’s Jaewoo Lee: In the press interview, the Governor cited a few main changes since April which led the BoK to cut in May rather than in April: the supplementary budget was finalized; many central banks, including the ECB, turned to easing mode; and the easing can help further with improving sentiments. The Governor, on the other hand, stated that today’s decision was not a response to the yen weakness, contrary to the often-voiced speculation. Continue reading: Asian Currency Wars, exporting deflation and the house price bind ...

Euro Rises as Sweden Threatens to Join Currency Wars

Thu, 09 May 2013 08:10:51 GMT

Source: stratrisks.com --- Thursday, May 09, 2013
The so-called Currency Wars progressed further in today’s session, as two new countries jumped on the bandwagon of selling or threatening to sell its own Currency to unwind recent strength. The comments from Sweden brought the Euro above 1.3100 against the US Dollar for the first time today, on speculation that another one of the Euro-zone’s neighbors may take up the Swiss model of buying the Euro with its own Currency. EUR/USD may continue to see support near 1.3100 from a rising trend line from March. ...