Currency wars begin

Perhaps historians will point to September 2010 as the start of WWIII - a war started as every nation began taking steps to out-devalue their currency (relative to the other nations).

Japan's intervention failed to get the Yen over 85, the Swiss are frantically selling to prop up the Euro, the Chinese insist on keeping the dollar up to ensure exports.

Brazil joined the fray to cheapen the Real this week, and QE2's debut in November will only mark the escalation.

http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/8026324/Gold-is-the-final-refuge-against-universal-currency-debasement.html



http://www.ft.com/cms/s/0/33ff9624-c...tml?ftcamp=rss

Buy gold - things are going to get rough as the world tries to beggar-thy-neighbor.

along these lines .... apparently Obama issued ultimatum to China

http://www.24hgold.com/english/news-...26703190G10020

this is serious

[img width=600 height=442]http://www.wired.com/images_blogs/photos/uncategorized/2008/11/07/2004test.jpg[/img]

We will never repay all that debt to China...lol. Never. We can't. We don't have any factories anymore to earn money.

:oo-->

tinpot dictator of failing empire threatens industrial and military powerhouse. he will still wonder why he is considered a joke after this, that is the level of arrogance and self delusion this leader possesses

The tinman is becoming irrelevant. Many in this country have already turned him off.

We're In a Global Currency War ... But What Does It Mean?

Submitted by George Washington on 10/03/2010 14:20 -0500




→ Washington’s Blog

There is a currency war raging world-wide.

Japan, Brazil, Peru and countries all over the world are trying to beggar thy neighbor (just as happened during the 1930s) and gain a leg up for their exports by cheapening their currencies.

If you take a step back, it really is an odd situation. As Joe Weisenthal writes:

Just think for a moment about the screwy times we live in when central banks are trying to hurt their rivals by buying up their rivals' bonds -- essentially lending them money.


Such is the state of things in a world where every country wants to weaken their currencies to boost their own exporters.

And the House has passed legislation saying China is a currency manipulator and has to raise the value of the Yuan.

What does it mean?

American experts say that the Chinese Yuan is undervalued by 25%, which makes Chinese exports artificially competitive. The U.S. Congress is trying to blame China's undervalued currency for America's bad economy and unemployment woes.

But the former U.S. trade representative, Susan Schwab, says that - while there's a very real problem in terms of China artificially keeping the renminbi low, this isn't the way to solve anything. Schwab calls it "a signal-sending exercise during an election season". She says that the bill won't really do anything, even if the Senate passes it and it is signed into law. Schwab says it "makes no sense", won't solve any problems, will escalate tensions, and will only divert attention from the real trade problems between the U.S. and China.

Indeed, Schwab warns that other countries might decide that this U.S. bill means that its open season for addressing currency manipulation, and that other countries believe that the U.S. is manipulating our currency. She says there could be a "boomerang effect" from the legislation.

much more: ZH

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Originally Posted by mike88

tinpot dictator of failing empire threatens industrial and military powerhouse. he will still wonder why he is considered a joke after this, that is the level of arrogance and self delusion this leader possesses

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There are some people who might read this post and think it is ambiguous.

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Originally Posted by MNeagle

Japan, Brazil, Peru and countries all over the world are trying to bugger thy neighbor (just as happened during the 1930s) and gain a leg up for their exports by cheapening their currencies.

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The author made a small typo. I corrected it for him.

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Originally Posted by k-os

Quote:

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Originally Posted by mike88

tinpot dictator of failing empire threatens industrial and military powerhouse. he will still wonder why he is considered a joke after this, that is the level of arrogance and self delusion this leader possesses

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There are some people who might read this post and think it is ambiguous.

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good point !

[img width=600 height=442]http://www.wired.com/images_blogs/photos/uncategorized/2008/11/07/2004test.jpg[/img]

i see a silver rocket, a gold rocket, a Pt rocket, and a Pd rocket.

what's the fifth rocket, a copper rocket ?

Quote:

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Originally Posted by gunDriller

Quote:

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Originally Posted by k-os

Quote:

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Originally Posted by mike88

tinpot dictator of failing empire threatens industrial and military powerhouse. he will still wonder why he is considered a joke after this, that is the level of arrogance and self delusion this leader possesses

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There are some people who might read this post and think it is ambiguous.

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good point !

[img width=600 height=442]http://www.wired.com/images_blogs/photos/uncategorized/2008/11/07/2004test.jpg[/img]

i see a silver rocket, a gold rocket, a Pt rocket, and a Pd rocket.

what's the fifth rocket, a copper rocket ?

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That one is carrying Uranium-235 the others you can not see in the picture are carrying a mix of Uranium-235 and Plutonium-239.