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China “Weaponizes Yuan” – Weakens Fix By Most Since 2016
China “Weaponizes Yuan” – Weakens Fix By Most Since 2016 On the heels of its ‘stealthy’ easing.. and not so stealthy: In the past 48 hours China has: – Cut its 7-day Treasury rate by 103bps – Launched quasi QE – told banks to flood the system with liquidity – Sent the Yuan tumbling – Warned […]
Argentina Peso Plunges To New Record Low
Argentina Peso Plunges To New Record Low Last night, Argentina got 50 billion pieces of good news, when the IMF agreed to provide the troubled Latin American nation with a $50BN standby loan, the largest even in IMF history. It also got some bad news, when the central bank announced it would remove the 25/USD […]
“EM FX Never Lies” – BofA Warns As Brazilian Real Is Routed
“EM FX Never Lies” – BofA Warns As Brazilian Real Is Routed Mohamed El-Erian warned overnight that Brazilian policy makers are “in quite a tricky position — and there’s little room for error,” and judging buy this morning’s rout in the real, he is dead right. Crippling nationwide trucker strikes, which prompted the resignation of […]
Good as gold: Turkey uses bullion to stabilise its economy
Good as gold: Turkey uses bullion to stabilise its economy Commercial banks are putting gold into Turkey’s central bank to help deal with rapid inflation Turkey’s central bank has accumulated an additional 400 metric tonnes of gold since 2011 (Reuters) Turkey’s economy has been in a tailspin with an inflationary currency, but the country is […]
America’s long-term challenge #3: destruction of the currency
America’s long-term challenge #3: destruction of the currency On April 2, 1792, George Washington signed into law what’s commonly referred to as the Mint and Coinage Act. It was one of the first major pieces of legislation in the young country’s history… and it was an important one, because it formally created the United States […]
Argentina Hikes Rates To 40% To Stall Currency, Bond Market Collapse
Argentina Hikes Rates To 40% To Stall Currency, Bond Market Collapse It may be time to cry for Argentina… The Central Bank of Argentina (BCRA) just hiked its 7-day repo reference rate to 40.00% – up a stunning 1275bps in a week – in a desperate attempt to stall the collapse of the peso (and […]
Everything You Need to Know About Inflation
Everything You Need to Know About Inflation It’s been said that when the U.S. sneezes the rest of the world catches a cold. Inflation by overall annual average has been below target for some years now, since 2012 to be exact. The Fed usually seeks a 2% inflation as a comfort zone. Granted, it’s only […]
How High Is The Risk of a Currency Crisis?
How High Is The Risk of a Currency Crisis? “The reports of my death are greatly exaggerated”, quipped Mark Twain in response to a newspaper report that said he was on his deathbed. The same could be said about many fiat currencies. Whether we are looking at the US dollar, the euro, the Japanese yen […]
The Road to 2025 (Part 3) – USD Dominated Financial System Will Fall Apart
The Road to 2025 (Part 3) – USD Dominated Financial System Will Fall Apart It’s our currency, but it’s your problem. – U.S. Treasury Secretary John Connelly to European Finance Ministers, 1971 Today’s post will cover a topic that consumed my thoughts for many years, but one I haven’t discussed much lately. Namely, the terminal […]
In The Rush Toward A Cashless Society, The Poorest Are At Risk Of Further Exclusion
In The Rush Toward A Cashless Society, The Poorest Are At Risk Of Further Exclusion “Unless you’re poor, it’s hard to understand what it’s like to be poor.” Indian Prime Minister Narendra Modi has a grand ambition to make his country into a cashless society. In 2014, he launched a scheme to provide bank accounts […]
In Unprecedented Move, China Plans To Pay For Oil Imports With Yuan Instead Of Dollars
In Unprecedented Move, China Plans To Pay For Oil Imports With Yuan Instead Of Dollars Just days after Beijing officially launched Yuan-denominated crude oil futures (with a bang, as shown in the chart below, surpassing Brent trading volume) which are expected to quickly become the third global price benchmark along Brent and WTI, China took […]
