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Tag Archives: currency devaluation
Will China Play The ‘Gold Card’?
Will China Play The ‘Gold Card’? Alasdair Macleod has posted an article at www.goldmoney.com which I think is important. (See “Credit deflation and gold”.www.goldmoney.com/research/analysis.) The thrust of the article is that China, at some point, will have to revalue gold in China; which means, in other words, that China will decide to devalue the Yuan […]
Desperate move by China a worrying sign: Don Pittis
Desperate move by China a worrying sign: Don Pittis Instead of boosting economy there is danger China’s sudden move will hurt confidence The father of Western medicine, Hippocrates, had some advice in 400 BC that has been passed down to today: “Extreme remedies are very appropriate for extreme diseases.” As the world responds to this week’s extreme andunexpected devaluation by the Chinese […]
12 Signs That An Imminent Global Financial Crash Has Become Even More Likely
12 Signs That An Imminent Global Financial Crash Has Become Even More Likely Did you see what just happened? The devaluation of the yuan by China triggered the largest one day drop for that currency in the modern era. This caused other global currencies to crash relative to the U.S. dollar, the price of oil […]
China “Loses Battle Over Yuan”, And Now The Global Currency War Begins
China “Loses Battle Over Yuan”, And Now The Global Currency War Begins Almost exactly seven months ago, on January 15, the Swiss National Bank shocked the world when it admitted defeat in a long-standing war to keep the Swiss Franc artificially weak, and after a desperate 3 year-long gamble, which included loading up the SNB’s balance […]
People’s Bank of China Freaks Out, Devalues Yuan by Record Amount, Vows to “Severely Punish” Capital Flight
People’s Bank of China Freaks Out, Devalues Yuan by Record Amount, Vows to “Severely Punish” Capital Flight Everything has started to go wrong in the Chinese economy despite its mind-bending growth rate of 7%. Exports plunged and imports too. Sales in the world’s largest auto market suddenly are shrinking just when overcapacity is ballooning. The […]
Currency Devaluation: The Crushing Vice of Price
Currency Devaluation: The Crushing Vice of Price Devaluation has a negative consequence few mention: the cost of imports skyrockets. When stagnation grabs exporting nations by the throat, the universal solution offered is devalue your currency to boost exports. As a currency loses purchasing power relative to the currencies of trading partners, exported goods and services become cheaper […]
The Greece and Eurozone Crisis Made Simple
The Greece and Eurozone Crisis Made Simple One can go into long convoluted explanations but, as I see it, there are two basic problems, one leading into the other. The more superficial problem is that in a single currency zone without the option of devaluation purchasing power will drain to the more competitive countries. To […]
China Could Face “Sharp” Rise In Capital Outflows If Stocks, Economy Lose Momentum
China Could Face “Sharp” Rise In Capital Outflows If Stocks, Economy Lose Momentum We’ve written quite a bit over the past two months about capital outflows from China. Last week for instance, we documented how the country saw its fourth consecutive quarter of outflows in Q1, bringing the 12 month running total to some $300 billion. Why, […]
Next Up: China Will Be Joining The Global Currency Wars
Next Up: China Will Be Joining The Global Currency Wars Japan and the Eurozone have already (re-) discovered the power-button of their printing presses, but these countries might soon be joined by China. China’s prime minister has announced on Sunday he thinks it will be very difficult for China to keep its economic growth rate at the […]
Currency Wars… Are Not Working
Currency Wars… Are Not Working While none of the current batch of currency-devaluing Central Bankers would admit that their policies are designed to weaken the currency, enhance competitiveness, and hail a new bright future of growth for their nation (by printing money), it is clear that is the chosen textbook-based path chosen. However, as the following […]
The Monetary Illusion Again in Trade
The Monetary Illusion Again in Trade Just as a follow-up to further highlight and emphasize the “monetary illusion” of currency devaluation in this closed environment, the yen’s returned devaluation against the “dollar” more recently has renewed confusion (or intentional misdirection) about what Abenomics is supposedly accomplishing. Taken solely from the perspective of the Japanese internally, exports […]
Financial Markets: Pinocchio’s Enchanted Island
Financial Markets: Pinocchio’s Enchanted Island The control of the commercials and the COMEX manipulators have is very depressing for the gold market investor. As soon as gold and the miners are about to get on another bullish leg, that the moving averages are positively aligned and re-crossing the 200-day MA, that the traders are standing […]
Draghi’s Dangerous Bet: The Perils of a Weak Euro
Draghi’s Dangerous Bet: The Perils of a Weak Euro The recent decision by the European Central Bank to open the monetary floodgates has weakened the euro and is boosting the German economy. But the move increases the threat of turbulence on the financial markets and could trigger a currency war. The concern could be felt everywhere […]
Hounded by Evil Dollar & Collapsed Commodity Prices, Corporate America Clamors for Total Currency War
Hounded by Evil Dollar & Collapsed Commodity Prices, Corporate America Clamors for Total Currency War Consumers are feeling practically euphoric. The Conference Board index jumped almost ten points to 102.9, the highest since August 2007, just before the whole construct came apart. Not that reality has suddenly improved that much. But hey, we’re born survivors. […]
The Currency Illusion
The Currency Illusion QUESTION: I want to share a true story with you. My father as a young boy in Greece saw what gold did for his family. My grandfather in Greece in the late 30′s and 40′s saw the rapid devaluation happening to the drachma. English sovereigns were plentiful there at the time as a […]
