Tag Archives: Currency Wars

Doug Casey on G20 Economic Suicide

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“The result is that you don’t just get one currency devaluing, but all currencies devaluing against real assets, commodities, goods, and services. I do believe that within the foreseeable future all these paper currencies are going to be devalued to zero – in other words, they will reach their actual intrinsic values.  This is extremely serious, because the productive people of the world – the ones who actually consume less than they produce and save the difference, which is what all economic growth and progress depends upon – will be wiped out. When their savings vanish, it’s going to create a social and political earthquake right off the Richter scale.”

http://www.caseyresearch.com/node/41549

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New Zealand signals readiness to join currency wars

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“New Zealand’s central bank governor was ready to intervene in foreign exchange markets, he said yesterday, the latest in a string of countries from South Korea to Brazil warning their currencies were too strong even as Group of 20 (G20) nations pledged to refrain from competitive devaluation.  Policymakers in South Korea and the Philippines are weighing curbs to capital inflows while Norway’s central bank said it was ready to cut interest rates to counter the krone’s strength.  ‘There seems to be a sense that the gloves are off in terms of central bank action in currency markets,’ said Mitul Kotecha, global head of foreign exchange strategy at Credit Agricole.”

http://www.iol.co.za/business/business-news/don-t-bet-on-kiwi-strength-warns-new-zealand-1.1474138

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Norway Ready to Use Rate Cuts to Weaken Krone, Central Bank Says

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“Policy makers around the world are discussing how to respond to a re-emergence of so-called currency wars as finance ministers from the Group of 20 gather in Moscow. Norway’s central bank governor has shown before he’s willing to deploy rates to cap excessive krone gains, cutting the benchmark by 0.75 percentage point in two moves starting in December 2011.  Olsen and his colleagues are torn between protecting exporters through lower rates that stem krone gains, and a policy that addresses an overheated property market.”

http://www.bloomberg.com/news/2013-02-14/norway-ready-to-use-rate-cuts-to-cool-krone-olsen-says.html

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The World Goes to Monetary War

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“What does it all mean? Essentially that, just as in the 1930s during the Great Depression, everybody is in open protectionist confrontation against everybody else. Back then the ‘beggar-thy-neighbor’ policies started with the Smoot-Hawley Tariff Act of 1930. This time responsibility for triggering the devaluation race in the developed world is more widespread but the objective is similar to that of tariff policy in the 1930s.”

http://www.independent.org/newsroom/article.asp?id=3557

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British pound strikes seven-month lows amid calls for further weakness

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“Sterling’s slide came as Martin Weale, a senior Bank of England policymaker, said on Saturday that the pound may need to weaken further, which would help to make exports cheaper and spur growth. ‘It may be that high levels of uncertainty and a reluctance to take on new risks have stood in the way of exporters seeking new markets and domestic producers doing what is needed to displace imports,’ Mr Weale said in a speech.  ‘Provided the calmer atmosphere we have seen since the summer is sustained, we may see further benefits of the depreciation.'”

http://www.telegraph.co.uk/finance/currency/9877424/Sterling-strikes-seven-month-lows-amid-calls-for-further-weakness.html

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