{"id":12497,"date":"2015-09-22T06:21:55","date_gmt":"2015-09-22T11:21:55","guid":{"rendered":"http:\/\/olduvai.ca\/?p=12497"},"modified":"2015-09-22T06:21:55","modified_gmt":"2015-09-22T11:21:55","slug":"currency-wars-battles-and-hostile-actions","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=12497","title":{"rendered":"Currency Wars, Battles, And Hostile Actions"},"content":{"rendered":"

Currency Wars, Battles, And Hostile Actions<\/a><\/strong><\/h3>\n

With its recent miniscule 2% devaluation of the Yuan, media pundits noted that China had now also entered into the global currency war.\u00a0 What this comment implies is that other countries with the ability to issue or print their own currency, including the U.S., have been participating in a currency war by devaluing their own currency as a hoped for means to increase their country exports and thereby stimulate their economies.\u00a0 As China\u2019s currency has been pegged to the USD, it had recently grown stronger as a byproduct of dollar\u2019s recent dramatic strength.\u00a0 Accordingly, the peg that China used to tie-in to the dollar\u2019s value had increased the Chinese yuan to a level that was hurting their exports.\u00a0 The resulting devaluation was China\u2019s attempt to correct partially this unwelcome currency appreciation.<\/span><\/p>\n

With FED\u2019s past QE series of money printing, we have been at the forefront attempting to devalue our own currency as a means to improve our exports, reach the FED\u2019s stated goal of increasing inflation which would produce higher GDP figures, allowing government officials to claim that economic growth or recovery is resuming.\u00a0 Not to be outdone, the European Central Bank has been purchasing weak credits from their banks, in order to make member bank financial solidity ratios appear stronger \u2013 which also requires substantially increasing its money supply.\u00a0 The largest and most outrageous example of intentional destruction in the value of its currency is Japan, which for nearly two decades has been on a mission to devalue its currency in order to stimulate inflation.<\/p>\n

Currency expansion may seem like an ideal, benign solution to a country trying to stimulate its exports, but it does create a financial assault or loss to their trading partners.\u00a0 For example, China\u2019s recent holding in excess of $1.3 trillion assets (until some recent sales of under $200 billion) from accumulated annual trade surpluses, would lose great value in its assets by the amount of such U.S. devaluation.<\/p>\n

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…click on the above link to read the rest of the article…<\/p>\n

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Currency Wars, Battles, And Hostile Actions With its recent miniscule 2% devaluation of the Yuan, media pundits noted that China had now also entered into the global currency war.\u00a0 What this comment implies is that other countries with the ability to issue or print their own currency, including the U.S., have been participating in a […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[124,130,9170,188,233,282,303,305,9169,661,662,827,839,3492,1031],"class_list":["post-12497","post","type-post","status-publish","format-standard","hentry","category-economics","tag-central-banks","tag-china","tag-currency-expansion","tag-currency-war","tag-ecb","tag-european-central-bank","tag-fed","tag-federal-reserve","tag-market-oracle","tag-qe","tag-quantitative-easing","tag-united-states","tag-us-dollar","tag-usd","tag-yuan"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/12497","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=12497"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/12497\/revisions"}],"predecessor-version":[{"id":12498,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/12497\/revisions\/12498"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=12497"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=12497"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=12497"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}