Why There Are No Winners in the Global Currency War -
In a world where growth is scarce and prospects aren't improving, an unspoken currency war has broken out. The short term pay-off might be a boost in exports, but, according to Bloomberg View's Mark Gilbert, there can be no real winners in the end.
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Showing posts with label currency. Show all posts
Showing posts with label currency. Show all posts
Tuesday, March 10, 2015
Sunday, August 3, 2014
Stephen Roach, US View on Currency and Trade (video)
U.S. View on Currency and Trade Is Myopic: Roach: Video - Bloomberg:
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July 24 (Bloomberg) –- Yale University Senior Fellow Stephen Roach discusses the U.S. trade deficit with China and risks in the Chinese economy. He speaks with Bloomberg’s Stephen Engle. (Source: Bloomberg)
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July 24 (Bloomberg) –- Yale University Senior Fellow Stephen Roach discusses the U.S. trade deficit with China and risks in the Chinese economy. He speaks with Bloomberg’s Stephen Engle. (Source: Bloomberg)
Sunday, March 2, 2014
Dollars, Euros, Gold
Currency has two primary purposes -- medium of exchange, and store of value -- when it loses either, you better have a viable option:
Argentina’s black market for hard cash: Buenos Aires deliverymen will bring the currency you need.: " . . . This year extreme inflation has sparked the country’s latest economic crisis, and locals are increasingly desperate to acquire foreign currencies. “Three things are stable here—dollars, euros, and gold,” Miguel Figueira, a Buenos Aires bank auditor, tells me. This isn’t the first time the peso has gone wobbly—in fact, many Argentines say they’re used to financial crises, which seem to occur like clockwork every 10 to 15 years. The most recent was in 2002, when the country defaulted on billions of dollars in debt. Hyperinflation saw the peso’s value slashed in half. Banks froze citizens’ savings accounts to prevent them from taking out their money, which had been deposited in dollars. Unemployment and poverty skyrocketed; the recovery took years. . . ." (read more at the link above)
When is the last time you heard the Fed concerned about the Dollar as medium of exchange or store of value?
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Argentina’s black market for hard cash: Buenos Aires deliverymen will bring the currency you need.: " . . . This year extreme inflation has sparked the country’s latest economic crisis, and locals are increasingly desperate to acquire foreign currencies. “Three things are stable here—dollars, euros, and gold,” Miguel Figueira, a Buenos Aires bank auditor, tells me. This isn’t the first time the peso has gone wobbly—in fact, many Argentines say they’re used to financial crises, which seem to occur like clockwork every 10 to 15 years. The most recent was in 2002, when the country defaulted on billions of dollars in debt. Hyperinflation saw the peso’s value slashed in half. Banks froze citizens’ savings accounts to prevent them from taking out their money, which had been deposited in dollars. Unemployment and poverty skyrocketed; the recovery took years. . . ." (read more at the link above)
When is the last time you heard the Fed concerned about the Dollar as medium of exchange or store of value?
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Wednesday, February 15, 2012
Greece: the euro has always been a flawed currency
Greece and the return of the economic 'death spiral' | David Blanchflower | Comment is free | guardian.co.uk: " . . . For all the deals being signed in Athens and Brussels, the Greek people have worked out that they have no hope; protest and social unrest now looks a rational option to the ordinary people who are bearing the cost to bail out European banks. Cuts in the minimum wage right now are probably not very smart politics. Greece does still have a card to play – which is "one down, all down". An exit from the euro would result in a depreciated drachma, which would potentially give a much needed boost to tourism. And that sounds better than all other alternatives currently on offer. There is still time for Germany's Angela Merkel to get out her cheque book; but otherwise, it's all over – and quite possibly very quickly. This really is what a death spiral looks like. . . . "
Don't feel bad Greece, the euro has always been a flawed currency--
Euro doomed from start, says Jacques Delors - Telegraph: "In an interview with The Daily Telegraph, Jacques Delors, the former president of the European Commission, claims that errors made when the euro was created had effectively doomed the single currency to the current debt crisis. He also accuses today’s leaders of doing “too little, too late,” to support the single currency. . . . Mr Delors claims that the current crisis stems from “a fault in execution” by the political leaders who oversaw the euro in its early days. Leaders chose to turn a blind eye to the fundamental weaknesses and imbalances of member states’ economies, he says. “The finance ministers did not want to see anything disagreeable which they would be forced to deal with,” he says. The euro came into existence without strong central powers to stop members running up unsustainable debts, an omission that led to the current crisis. Now that the excessive borrowing of countries such as Greece and Italy has brought the eurozone to the brink of disaster, Mr Delors insists that all European countries must share the blame for the crisis. “Everyone must examine their consciences,” he says.". . . Mr Delors says that he shares some of the concerns that were expressed by British politicians and economists about the euro before its creation. When “Anglo-Saxons” said that a single central bank and currency without a single state would be inherently unstable, “they had a point”, he admits. . . ."
In other words, the sooner everyone in the Eurozone gets honest, the better. And the sooner Greece can leave the euro and start rebuilding, the better for the Greeks.
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Don't feel bad Greece, the euro has always been a flawed currency--
Euro doomed from start, says Jacques Delors - Telegraph: "In an interview with The Daily Telegraph, Jacques Delors, the former president of the European Commission, claims that errors made when the euro was created had effectively doomed the single currency to the current debt crisis. He also accuses today’s leaders of doing “too little, too late,” to support the single currency. . . . Mr Delors claims that the current crisis stems from “a fault in execution” by the political leaders who oversaw the euro in its early days. Leaders chose to turn a blind eye to the fundamental weaknesses and imbalances of member states’ economies, he says. “The finance ministers did not want to see anything disagreeable which they would be forced to deal with,” he says. The euro came into existence without strong central powers to stop members running up unsustainable debts, an omission that led to the current crisis. Now that the excessive borrowing of countries such as Greece and Italy has brought the eurozone to the brink of disaster, Mr Delors insists that all European countries must share the blame for the crisis. “Everyone must examine their consciences,” he says.". . . Mr Delors says that he shares some of the concerns that were expressed by British politicians and economists about the euro before its creation. When “Anglo-Saxons” said that a single central bank and currency without a single state would be inherently unstable, “they had a point”, he admits. . . ."
In other words, the sooner everyone in the Eurozone gets honest, the better. And the sooner Greece can leave the euro and start rebuilding, the better for the Greeks.
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