Tag Archives: Currency Wars

Trump admin. singles out Germany for ‘exploiting’ US, signals currency war

Posted on by

“In comments published in the European press on Tuesday, Trump trade adviser Peter Navarro said the ‘grossly undervalued’ euro served as a currency for Germany alone, allowing the country to ‘exploit’ the United States and others.  On Capitol Hill, Treasury Secretary-designate Steven Mnuchin softened the traditional U.S. ‘strong dollar’ mantra, suggesting that the dollar’s current strength may be working against what has become perhaps the administration’s central economic priority: reviving U.S. manufacturing and exports.”

Read more: http://uk.reuters.com/article/us-usa-trump-germany-analysis-idUKKBN15F2WP

Scan to Donate Bitcoin to Freedomwat.ch Staff
Did you like this?
Tip Freedomwat.ch Staff with Bitcoin
Donate via Installed Wallet

10 Charts on Emerging Market Corporate Debt

Posted on by

“Corporate debt levels in emerging markets are spooking both economists and investors. Not that this debt burden came out of nowhere, of course. But, admittedly, there are a couple of catalysts to explain why the EM debt pile is causing some headaches just now. First, the growth of emerging corporate debt is accelerating, and, second, the massive depreciation of EM currencies is exaggerating elevated debt levels. This blog contains 10 (familiar) graphs (taken from familiar institutions like BIS and IMF) to portray these trends.”

http://jeroenbloklandblog.com/2015/10/14/10-charts-on-emerging-market-corporate-debt/

Scan to Donate Bitcoin to Freedomwat.ch Staff
Did you like this?
Tip Freedomwat.ch Staff with Bitcoin
Donate via Installed Wallet

Only in Argentina: Where Minus 3% Bond Yields Are All the Rage [2015]

Posted on by

“While the bonds yield minus 3.1 percent, it’s a small price to pay in a country where capital controls have caused multiple black-market exchange rates to proliferate and rampant inflation has eroded the value of peso deposits. Foreign companies, prevented from repatriating dividends because of the controls, are also buying the securities as a hedge against a potential devaluation, which has become more likely as trading partners from Brazil to China weaken their own currencies, said Eduardo Levy-Yeyati, director of economic consultant Elypsis. The government sold the equivalent of $1.1 billion of dollar-linked bonds due in 2017 on Tuesday, the first such sale in nine months.”

http://www.bloomberg.com/news/articles/2015-08-20/only-in-argentina-where-minus-3-bond-yields-are-all-the-rage

Scan to Donate Bitcoin to Freedomwat.ch Staff
Did you like this?
Tip Freedomwat.ch Staff with Bitcoin
Donate via Installed Wallet

Mexican Peso’s Surprising Drop Spurs Speculation Banxico to Act

Posted on by

“The peso is this year’s second-worst performing major currency, as investors use Mexico’s highly liquid peso as a proxy for global emerging markets. Investors are also concerned that the outlook for higher interest rates in the U.S. will lessen Mexico’s appeal for bondholders chasing the country’s steeper yields. The currency slipped 0.4 percent Tuesday after touching a record-low.  Since November, the central bank has been selling $200 million on days the peso weakens at least 1% and an additional $200 million if the drop is more than 1.5%. The policies to support the peso have contributed to an erosion in the country’s foreign reserves, which are near a one-year low at about $175 billion.”

http://www.bloomberg.com/news/articles/2016-01-19/mexican-peso-s-surprising-drop-spurs-speculation-banxico-to-act

Scan to Donate Bitcoin to Freedomwat.ch Staff
Did you like this?
Tip Freedomwat.ch Staff with Bitcoin
Donate via Installed Wallet

Canadians Panic As Food Prices Soar On Collapsing Currency

Posted on by

“As Bloomberg reminds us, Canada imports around 80% of its fresh fruits and vegetables. When the loonie slides, prices for those goods soar. ‘With lower-income households tending to spend a larger portion of income on food, this side effect of a soft currency brings them the most acute stress’ Bloomberg continues.  Of course with the layoffs piling up, you can expect more households to fall into the ‘lower-income’ category where they will have to fight to afford things like $3 cucumbers, $8 cauliflower, and $15 Frosted Flakes.  Some now fear that the hardest hit parts of the country may experience a spike in obesity rates as Canadians resort to cheap, unhealthy foods.”

http://www.zerohedge.com/news/2016-01-13/canadians-panic-food-prices-soar-collapsing-currency

Scan to Donate Bitcoin to Freedomwat.ch Staff
Did you like this?
Tip Freedomwat.ch Staff with Bitcoin
Donate via Installed Wallet

After QE failure, BOJ’s Kuroda says no plan to ease policy now

Posted on by

“Bank of Japan Governor Haruhiko Kuroda said on Friday he had no plan to expand monetary stimulus now, blaming sharp declines in oil costs for keeping consumer inflation distant from the bank’s ambitious 2 percent target.  While he maintained his optimistic view of the economy, Kuroda stressed his resolve to ease monetary policy further if risks threaten achievement of the BOJ’s price target.  The remarks, made in response to a question by an opposition lawmaker, pushed down Japanese stocks on disappointment that no immediate monetary stimulus was forthcoming.”

http://www.reuters.com/article/us-japan-economy-boj-idUSKCN0UT0C3

Scan to Donate Bitcoin to Freedomwat.ch Staff
Did you like this?
Tip Freedomwat.ch Staff with Bitcoin
Donate via Installed Wallet

Hedge Fund That Called Subprime Crisis Urges 50% Yuan Drop

Posted on by

“Mark Hart, the hedge fund manager whose bets against U.S. subprime mortgages and European sovereign debt proved prescient, said China should weaken its currency by more than 50 percent this year. Hart, whose prescription clashes with consensus forecasts for the yuan and recent comments from senior government officials, said China would be justified in weakening the currency after central banks in Europe and Japan fueled declines in their exchange rates to stoke economic growth in recent years. Such a move would likely come as a surprise to global investors, who were rattled by a drop of less than 3 percent in the yuan last August.”

http://www.bloomberg.com/news/articles/2016-01-19/hedge-fund-that-called-subprime-crisis-says-yuan-should-fall-50-

Scan to Donate Bitcoin to Freedomwat.ch Staff
Did you like this?
Tip Freedomwat.ch Staff with Bitcoin
Donate via Installed Wallet

As China Dumps Treasuries, World Sees No Better Place for Refuge

Posted on by

“As the biggest overseas creditor to the U.S., China has bankrolled hundreds of billions of dollars in deficit spending, particularly since the financial crisis. And that voracious appetite for Treasuries in recent years has been key in keeping America’s funding costs in check, even as the market for U.S. government debt ballooned to a record $13.2 trillion.  Yet for many debt investors, there’s little reason for alarm. While there’s no denying that China’s selling may dent demand for Treasuries in the near term, the fact the nation is raising hundreds of billions of dollars to support its flagging economy and stem capital flight is raising deeper questions about whether global growth itself is at risk.”

http://www.bloomberg.com/news/articles/2016-01-10/china-retreat-from-u-s-bonds-prompts-shrugs-where-fear-reigned

Scan to Donate Bitcoin to Freedomwat.ch Staff
Did you like this?
Tip Freedomwat.ch Staff with Bitcoin
Donate via Installed Wallet

ISIS Fighters’ Salaries Halved After Loss Of Territory And Air Strikes

Posted on by

“The terror group’s ‘treasury’ released a document stating that they have decided to cut the salaries due to ‘exceptional circumstances.’  The document does not describe the reasons behind its decision, it is thought to be the result of strikes that destroyed its bank and millions in currency.  ‘On account of the exceptional circumstances the Islamic State is facing, it has been decided to reduce the salaries that are paid to all mujahideen by half, and it is not allowed for anyone to be exempted from this decision, whatever his position,’ the document states.”

http://breaking911.com/isis-fighters-salaries-halved-due-loss-of-territory-and-air-strikes/

Scan to Donate Bitcoin to Freedomwat.ch Staff
Did you like this?
Tip Freedomwat.ch Staff with Bitcoin
Donate via Installed Wallet

Saudi Arabia’s Secret Holdings of U.S. Debt Are Suddenly a Big Deal

Posted on by

“That question — unanswered since the 1970s, under an unusual blackout by the U.S. Treasury Department — has come to the fore as Saudi Arabia is pressured by plunging oil prices and costly wars in the Middle East. As a matter of policy, the Treasury has never disclosed the holdings of Saudi Arabia, long a key ally in the volatile Middle East, and instead groups it with 14 other mostly OPEC nations including Kuwait, the United Arab Emirates and Nigeria. Apart from the kingdom itself, only a handful of Treasury officials, and those at the Federal Reserve who compile the data on their behalf, have a clear picture of Saudi Arabia’s U.S. debt holdings and whether they’re rising or falling.”

http://www.bloomberg.com/news/articles/2016-01-22/u-s-is-hiding-treasury-bond-data-that-s-suddenly-become-crucial

Scan to Donate Bitcoin to Freedomwat.ch Staff
Did you like this?
Tip Freedomwat.ch Staff with Bitcoin
Donate via Installed Wallet