{"id":1851,"date":"2014-11-20T07:21:55","date_gmt":"2014-11-20T12:21:55","guid":{"rendered":"http:\/\/olduvai.ca\/?p=1851"},"modified":"2014-11-20T07:21:55","modified_gmt":"2014-11-20T12:21:55","slug":"as-the-sanctions-war-heats-up-will-putin-play-his-gold-card-david-stockmans-contra-corner","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=1851","title":{"rendered":"As The \u201cSanctions War\u201d Heats Up, Will Putin Play His \u2018Gold Card\u2019? | David Stockman&#8217;s Contra Corner"},"content":{"rendered":"<p><a href=\"http:\/\/davidstockmanscontracorner.com\/as-the-sanctions-war-heats-up-will-putin-play-his-gold-card\/\">As The \u201cSanctions War\u201d Heats Up, Will Putin Play His \u2018Gold Card\u2019? | David Stockman&#8217;s Contra Corner<\/a>.<\/p>\n<p style=\"box-sizing: border-box; word-wrap: break-word;\">The topic of \u2018currency war\u2019 has been bantered about in financial circles since at least the term was first used by Brazilian Finance Minister Guido Mantega in September 2010. Recently, the currency war has escalated, and a \u2018sanctions war\u2019 against Russia has broken out. History suggests that financial assets are highly unlikely to preserve investors\u2019 real purchasing power in this inhospitable international environment, due in part to the associated currency crises, which will catalyse at least a partial international remonetisation of gold. Vladimir Putin, under pressure from economic sanctions, may calculate that now is the time to play his \u2018gold card\u2019.<\/p>\n<p style=\"box-sizing: border-box; word-wrap: break-word;\">A BRIEF HISTORY OF THE CURRENCY WAR<\/p>\n<p style=\"box-sizing: border-box; word-wrap: break-word;\">\u201cWe\u2019re in the midst of an international currency war. This threatens us because it takes away our competitiveness.\u201d Brazilian Finance Minister Mantega uttered these words in September 2010, about two years after the spectacular global financial crisis of late 2008. During and following the crisis, the euro declined by around 25% versus the dollar. The pound sterling declined by nearly 30%. And while the Brazilian real also declined initially, it subsequently regained these losses in less than a year, unlike either the euro or pound. Dramatic swings in currency values can have a material impact on relative rates of economic growth. And when global economic growth is weak, the temptation to devalue and take some global market share from competitors is strong. \u201cThe advanced countries are seeking to devalue their currencies,\u201d claimed Mantega.[1]<\/p>\n<p style=\"box-sizing: border-box; word-wrap: break-word;\">The decline in the value of the euro in 2008-11 was of special importance because it exposed a key fault-line across the euro-area: That between the competitive exporters of the North, such as Germany, Poland and the Czech and Slovak Republics; and the less competitive importers of the South, such as Italy, Spain, Portugal and Greece. With the euro weaker, the exporters\u2019 economies were booming. Yet the fallout from the financial crisis fell hardest on the least competitive euro members, threatening the solvency of their banks and, by extension, the sustainability of their governments\u2019 finances.<\/p>\n<p style=\"box-sizing: border-box; word-wrap: break-word;\">&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>As The \u201cSanctions War\u201d Heats Up, Will Putin Play His \u2018Gold Card\u2019? | David Stockman&#8217;s Contra Corner. The topic of \u2018currency war\u2019 has been bantered about in financial circles since at least the term was first used by Brazilian Finance Minister Guido Mantega in September 2010. Recently, the currency war has escalated, and a \u2018sanctions [&hellip;]<\/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":[2,5],"tags":[188,374,694,857],"class_list":["post-1851","post","type-post","status-publish","format-standard","hentry","category-economics","category-geopolitics","tag-currency-war","tag-gold","tag-russia","tag-vladimir-putin"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/1851","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=1851"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/1851\/revisions"}],"predecessor-version":[{"id":1852,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/1851\/revisions\/1852"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1851"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1851"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1851"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}