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Turkey On Verge Of Currency Collapse As Lira Implodes, Crashes 4% In Minutes
Turkey On Verge Of Currency Collapse As Lira Implodes, Crashes 4% In Minutes In recent weeks we have had our share of humorous hot takes on the current state of Turkey’s currency, which thanks to the “sage” economic despotism of the country’s authoritarian ruler has been in freefall for much of the past decade. folks, […]
Waypoints on the road to currency destruction — and how to avoid it
Waypoints on the road to currency destruction — and how to avoid it The few economists who recognise classical human subjectivity see the dangers of a looming currency collapse. It can easily be avoided by halting currency expansion and cutting government spending so that their budgets balance. No democratic government nor any of its agencies […]
“Panic, Pure Panic” – Chilean Peso Collapses To 800/USD, Blowing Through Record Lows
“Panic, Pure Panic” – Chilean Peso Collapses To 800/USD, Blowing Through Record Lows The Chilean peso extended a four-day losing streak on Tuesday, sinking by the most in eight years, to a new record low at 800/USD. Bearish market sentiment, political chaos, and a national strike intended to ratchet up pressure on the government and its plans to […]
Will MMT Trigger the Collapse of “Money”?
Will MMT Trigger the Collapse of “Money”? If the supply of money in an economy is $1 billion, each unit of currency buys X (the purchasing power of each unit of currency). If the money supply is doubled without any expansion in the consumers’ pool of goods and services, the purchasing power of each unit […]
The monetary lessons from Germany
The monetary lessons from Germany Germany suffered two currency collapses in the last century, in 1920-23 and1945-48. The architect of the recovery from the former, Hjalmar Schacht, chose to cooperate with the Nazi successors to the Weimar Republic, and failed. In that of the second, Ludwig Erhard remained true to his free market credentials and […]
Turkey On Verge Of Collapse As Overnight Swaps Hit 700%, CDS Soar
Turkey On Verge Of Collapse As Overnight Swaps Hit 700%, CDS Soar In Turkey’s ongoing attempt to crush currency manipulators, yesterday we reported that in addition to launching a “probe” against JPMorgan, the biggest US bank, for daring to cut its TRY price target, as well as threatening unnamed “manipulators”, on Monday Turkish authorities took a page […]
As Emerging Market Currencies Collapse, Gold is being Mobilized
As Emerging Market Currencies Collapse, Gold is being Mobilized In recent weeks, global financial markets have been increasingly spooked by an intensifying crisis in emerging market currencies including those of Turkey and Argentina. Add to this the ongoing currency crisis in Venezuela and the currency problems of Iran. While all of these countries have economy […]
Argentine Peso Collapses To New Low Despite Massive Intervention
Argentine Peso Collapses To New Low Despite Massive Intervention Update: *ARGENTINE CENBANK SAID TO OFFER $5B IN PESO MARKET AT 25/USD – That’s 10% of reserves!! * * * The Argentine Central Bank spent over $1 billion buying pesos on Friday (and another billion to buy short-term bonds back) to support the collapsing currency… But… […]
Venezuela’s Inflation Surges to A New High: 7459%
Venezuela’s Inflation Surges to A New High: 7459% After backing off over the past month and a half, Venezuela’s hyperinflation is surging again, making a new high of 7459% yr/yr. The Grim Reaper has taken his scythe to the Venezuelan bolivar. The death of the bolivar is depicted in the following chart. On the black […]
Inflation v Deflation–State Finances
INFLATION V DEFLATION – STATE FINANCES There is a general belief, and that is all it is, that state finances fare better in an inflationary environment than a deflationary one. This perception arises from the transfer of wealth from lenders to the state through a devaluation of the currency, which occurs with monetary inflation, compared […]
Canadians Are Panicking Over Food Costs After Currency Collapse
Canadians Are Panicking Over Food Costs After Currency Collapse It’s no secret that America has a serious inflation problem. Though the Federal Reserve insists that our inflation rate is only at around .5%, we’ve all seen the price of food, rent, healthcare, and energy skyrocket over the past 10-20 years. However, this has been a […]
Canadians Panic As Food Prices Soar On Collapsing Currency
Canadians Panic As Food Prices Soar On Collapsing Currency It was just yesterday when we documented the continuing slide in the loonie, which is suffering mightily in the face of oil’s inexorable decline. As regular readers are no doubt acutely aware, Canada is struggling through a dramatic economic adjustment, especially in Alberta, the heart of the country’s oil patch. […]
Loonie Lurches To 13 Year Lows As Crude Nears ‘2’ Handle
Loonie Lurches To 13 Year Lows As Crude Nears ‘2’ Handle Today’s renewed plunge in WTI Crude (on the verge of a ‘2’ handle any second) has extended the Canadian Dollar’s weakness (among many other oil producers). For the first time since early 2003, the Loonie is worth less than 70c… (anyone for skiing?) This can only […]
Argentine Peso Collapses 29% After Government Lifts Currency Controls
Argentine Peso Collapses 29% After Government Lifts Currency Controls For those interested in a case study of what happens after a dramatic devaluation, you now have front row seats for what is likely to be a 25-30% peso plunge. Grab the popcorn. That’s what we said on Wednesday evening in “Prepare For Peso Plunge: Argentina Lifts Currency […]
