{"id":22274,"date":"2016-12-18T15:18:49","date_gmt":"2016-12-18T20:18:49","guid":{"rendered":"http:\/\/olduvai.ca\/?p=22274"},"modified":"2016-12-18T15:18:49","modified_gmt":"2016-12-18T20:18:49","slug":"currency-armageddon-a-word-about-the-hated-dollar","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=22274","title":{"rendered":"Currency Armageddon? A Word about the Hated Dollar"},"content":{"rendered":"<header>\n<h3 class=\"entry-title\"><a href=\"http:\/\/wolfstreet.com\/2016\/12\/15\/currency-armageddon-a-word-about-the-hated-dollar\/\">Currency Armageddon? A Word about the Hated Dollar<\/a><\/h3>\n<\/header>\n<div class=\"entry-content\">\n<p><strong>The \u201cdeath of the dollar\u201d will have to be\u00a0rescheduled.<\/strong><\/p>\n<p>Sharply higher yields on Treasury securities and the prospect of more rate hikes by the Fed \u2013 in a world where other major central banks are still stewing innocent bystanders in the juices of NIRP, negative yields, and \u201c<a href=\"http:\/\/wolfstreet.com\/2014\/11\/20\/the-wrath-of-draghi-bailed-out-german-megabank-imposes-negative-interest-rates\/\" target=\"_blank\">punishment interest<\/a>\u201d \u2013 sent the hated dollar, whose death has been promised for a long time, soaring.<\/p>\n<p>It soared against the euro. Or, seen from the other side, the euro plunged against the dollar, to $1.039, the lowest level since January 2003; down 35% from its peak of $1.60 during the Financial Crisis; down 10% from its 52-week high in March of $1.16; and down 2.7% from $1.068 yesterday before the Fed announcement.<\/p>\n<p>Pundits are once again declaring that the euro will fall to \u201cparity\u201d with the dollar, as the ECB has been wishing for a long time, though it cannot admit officially that it is trying to crush the euro to give member states an export advantage. That would be \u201ccurrency manipulation,\u201d which is frowned upon in other countries. But a big wave of \u201cmoney printing\u201d and forcing yields below zero \u201cto stimulate the economy,\u201d whereby the currency gets crushed as a side effect, is OK.<\/p>\n<p>Tourist destinations and flagship retailers in the US watch out: for your euro tourist customers, things are getting very expensive in the US, and some may choose to buy less or travel to cheaper countries.<\/p>\n<p>The yen plunged 3% since the Fed announcement to \u00a5118.4 to the dollar. It\u2019s down 15% since September. But it\u2019s still higher than it had been in mid-2015, when it had sunk as low as \u00a5123 to the dollar.<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Currency Armageddon? A Word about the Hated Dollar The \u201cdeath of the dollar\u201d will have to be\u00a0rescheduled. Sharply higher yields on Treasury securities and the prospect of more rate hikes by the Fed \u2013 in a world where other major central banks are still stewing innocent bystanders in the juices of NIRP, negative yields, and [&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],"tags":[7035,303,8222,3650,2721,4254,4255],"class_list":["post-22274","post","type-post","status-publish","format-standard","hentry","category-economics","tag-currencies","tag-fed","tag-great-financial-crisis","tag-us-federal-reserve","tag-us-treasuries","tag-wolf-richter","tag-wolfstreet"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/22274","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=22274"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/22274\/revisions"}],"predecessor-version":[{"id":22275,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/22274\/revisions\/22275"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=22274"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=22274"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=22274"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}