Currency War .. hello iTulip?

[blazespinnaker]

So, like, what's going on here? There is a currency war going on and iTulip isn't bothering talking about it.

The currency war was one of EJ's main ideas and it has totally come to fruition, and yet it's going largely ignored here.

Sheesh..

http://www.bloomberg.com/news/2010-1...ntos-says.html

http://www.bloomberg.com/news/2010-1...ven-rates.html

http://www.bloomberg.com/news/2010-1...ry-easing.html

etc etc


It seems to me this is the most important macroeconomic discussion of the day.

The question is .. will the war escalate? Will it defuse? What's going to happen here?

[mooncliff]

Re: Currency War .. hello iTulip?

Oh, no, I think everyone can hardly type because they are laughing so much... I particularly liked
Timmy: We will NOT devalue the dollar!
Timmy next day: All of you will let your currencies rise!


There were these funny comments at Reuters:

What happened to the original breaking news on Reuters just 5 minutes ago?

Germany had been accusing the U.S. of manipulating and deflating its currency.
Germany had warned against the competitive deflation that happened to all the European and American countries in the 1930s.

An agreement “not to deflate currency competitively” is targeted at the United States, not China because the United State’s accusation is that China did not appreciate enough. China has not been changing since it opened its market in the 1970s. So China is not doing something new. The floundering American market it what’s new.

The news just changed to make it like a political success when it is far from it!

Oct 22, 2010 9:26pm EDT
The original breaking news sounded like there was agreement to restrain the Americans. This one, sounds artfully altered to make it appear that the Americans won. Is the editor trying to help Obama and the Democrats win the mid-term elections? By the time the real results come out, Americans are already duped because the elections are in 2 weeks. Reuters: this is shameful!

Oct 22, 2010 9:29pm EDT
Either Timothy Geithner or Ben Bernanke will lose credibility after this.
This is austerity VS QE2.

http://www.reuters.com/article/comme...69K0Q720101023

[FRED]

Re: Currency War .. hello iTulip?

So, like, what's going on here? There is a currency war going on and iTulip isn't bothering talking about it.

The currency war was one of EJ's main ideas and it has totally come to fruition, and yet it's going largely ignored here.

Sheesh..

http://www.bloomberg.com/news/2010-1...ntos-says.html

http://www.bloomberg.com/news/2010-1...ven-rates.html

http://www.bloomberg.com/news/2010-1...ry-easing.html

etc etc


It seems to me this is the most important macroeconomic discussion of the day.

The question is .. will the war escalate? Will it defuse? What's going to happen here?

Ask and ye shall receive. We will post an extensive article and interview on the topic tomorrow AM.

[LargoWinch]

Re: Currency War .. hello iTulip?

The question is .. will the war escalate? Will it defuse? What's going to happen here?

No the question is: does Gold cares?

[GRG55]

Re: Currency War .. hello iTulip?

So, like, what's going on here? There is a currency war going on and iTulip isn't bothering talking about it.

The currency war was one of EJ's main ideas and it has totally come to fruition, and yet it's going largely ignored here.

Sheesh..

http://www.bloomberg.com/news/2010-1...ntos-says.html

http://www.bloomberg.com/news/2010-1...ven-rates.html

http://www.bloomberg.com/news/2010-1...ry-easing.html

etc etc


It seems to me this is the most important macroeconomic discussion of the day.

The question is .. will the war escalate? Will it defuse? What's going to happen here?

I recommend you re-frame the currency debate as a deflation vs inflation issue...and you should get PLENTY of discussion on this thread... :-)

[ThePythonicCow]

Re: Currency War .. hello iTulip?

So, like, what's going on here?

It seems that China is not bowing to the Americans. From China against current account limits: G20 source :

GYEONGJU, South Korea (Reuters) - China has made clear it will not agree to a G20 communique that explicitly binds countries to limits on current account balances or any other form of rules on currency policy, a G20 source told Reuters on Friday.

Finally, someone is willing and able to stand up to the Rothschild-Rockefeller-etc elite Western Banksters.

The claims of a currency war were these Western Banksters trying to force other central banks to reign in money "printing", so that the Dollar would have clear sailing to inflate (use more value) the most, relative to other currencies.

China is saying no, rather than the U.S. putting constraints on China so that the U.S. can win the race to the bottom of currency value, instead put the burden on the U.S. to quit destroying the Dollar.

Then this, 4 hours ago, in the final communique from this weekends G20 meeting, found at G20 inks pact to avert trade war:

China, among others, frets that the U.S. policy stance will debase the dollar, the lynchpin of the global economy. In a thinly veiled reference to the United States, the G20 statement said advanced countries, including those with reserve currencies, would be vigilant against excessive volatility and disorderly movements in exchange rates.

It sounds like the U.S. did not get to control the result in the way it would have liked to.

(Thanks to The Daily Bell for some of the above thoughts.)

[c1ue]

Re: Currency War .. hello iTulip?

So, like, what's going on here? There is a currency war going on and iTulip isn't bothering talking about it.

Why talk about something which has been clearly elucidated as going to happen?

The update from EJ/iTulip will be nice, but the writing has been on the wall for several years now.

[FRED]

Re: Currency War .. hello iTulip?

China Crash 2011 - Part I: The repetition compulsion of central bankers

[Slimprofits]

Re: Currency War .. hello iTulip?

"Uncontrolled printing of dollars and rising international prices for commodities are causing an imported inflationary 'shock' for China and are a key factor behind increasing uncertainty," the state-run newspaper China Business News quoted Chen as saying while attending the autumn session of the Canton Trade Fair.

http://www.canadianbusiness.com/mark...tent=D9J3VE980
China trade minister says excess printing of US dollars causing inflation shock

[GRG55]

Re: Currency War .. hello iTulip?

"Uncontrolled printing of dollars and rising international prices for commodities are causing an imported inflationary 'shock' for China and are a key factor behind increasing uncertainty," the state-run newspaper China Business News quoted Chen as saying while attending the autumn session of the Canton Trade Fair.

http://www.canadianbusiness.com/mark...tent=D9J3VE980
China trade minister says excess printing of US dollars causing inflation shock

He seems to have conveniently overlooked the excess printing of yuan needed to match the Dollars in order to hold their currency peg. And unlike Dollars, the yuan don't leave the country...they just flow into the few sectors of the economy that the government allows private investment to participate. Same old, same old. The Dirhams in the UAE followed the same pattern as the Dubai real estate bubble inflated in a precursor case study to what's happening in China...