Currency Wars

‘I can’t look at myself in the mirror’: Hendry reveals he has turned bullish

"Eclectica hedge fund manager Hugh Hendry has said he has been forced to leave his bearish outlook behind as he faces up to a market 'which only makes sense through the prism of trends'. Hendry said he is no longer fighting the 'two-way feedback loop' which is continuing to boost risk assets. That centres on the currency war being played out between the US and China, in which US QE prompts dollar-denominated investment to head to China, and China fights the resulting upwards pressure on its currency by manufacturing an investment boom - leading to falling US inflation expectations, which in turn prompts the Federal Reserve to loosen policy once again." Continue reading →

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Why You Shouldn’t Write Off BitCoin Just Yet

"BitCoin poses a pretty substantial challenge to business people: it requires sufficient understanding of computer science to appreciate its elegance and idiosyncrasies but, perhaps more importantly, it requires a sufficient understanding of finance to appreciate it vis a vis other fiat currencies and gold. Despite this complexity, business leaders are pressured to take a stance on this fledgling techno-currency. Most have chosen the safe approach writing it off as the latest Ponzi scheme with some even arguing that it will be the largest bubble burst in the history of Ponzi bubbles. I’m afraid I’m not so sure… And here’s why." Continue reading →

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Russian lawmaker seeks to ban US dollar, predicts 2017 collapse

"To protect Russians against the 'collapsing US debt pyramid', a Russian legislator has filed a draft bill to ban circulation of the currency in Russia. Once a Moscow mayoral hopeful, Mikhail Degtyarev, 32, likens the US dollar to a worldwide ponzi scheme which he says is scheduled to end in 2017. The bill would impose a ban on dollars within a year of its passage, and any private citizen holding accounts in dollars would either need to spend the money or convert it to another currency. There is no proposed ban on the euro, British pound, yen, or yuan. If one doesn’t exchange or transfer dollars within a year, the dollars will be seized by officials, and reimbursed in rubles within 30 calendar days." Continue reading →

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The UK Recovery that Isn’t … the Market Recovery that Is

"What central bankers do is print money – digitally these days – and then transfer those digits to financial firms. Now the money finds its way into the financial economy, including, most importantly, the bond and stock markets. Once the money has swelled the financial markets, the 'real' economy should benefit. And then once companies are feeling better about a 'recovery' they will finally start to hire. This convoluted chain of events is simply illogical. It would be much simpler just to GIVE people money if central bankers really wanted stimulate job growth and create prosperity. But that's not what is happening because the object of central banking is to create money and maintain control of it." Continue reading →

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Don’t laugh – Bitcoin is making a serious point

"On one side of the Bitcoin argument, this internet-based currency has some fervent backers – many of them tech-savvy youngsters. On the other side stand almost all reputable economists, together with a fierce range of vested interests – including the banks, credit card companies and other conventional players in the extremely lucrative money-transferring business. To them, Bitcoin is a cross between a dangerous irritant and a bad joke. To mention it in conversation is tasteless. To take it seriously is deeply suspect. Yet several events happened last week that made me suspect that Bitcoin – and the idea of 'stateless' currencies more generally – will soon catch the zeitgeist." Continue reading →

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Premeditation of Currency Wars

"The BRICs system of finance is entirely Western, starting with its central banking and continuing via its banking interests that are inevitably part of the larger fabric of Anglosphere finance. If those in charge of Western finance really did not want the BRICs – including China – to create an alternative to the dollar, it likely wouldn't happen. But it is happening. The dollar has been destabilized and the BRICs and China offer alternative currencies that are supposedly seen as 'stronger.' Jim Rogers, for instance – a respected voice in commodities and a commentator we've often interviewed – believes the yuan could appreciate 500 percent against the dollar in the next few years." Continue reading →

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Finally, the End of Keynesianism

"Are you a Keynesian? So many seem to be. Do you really believe that a properly functioning, mathematically literate approach to high finance can salvage what's left of the financial systems of the US, the West, the entire world? Top central bankers apparently don't. Just look at this article excerpt. They've retreated from the idea of tapering until 2014 and Peter Schiff was probably correct that they won't really taper at all because they can't. That should put an end to Keynesianism, though probably it won't. The technocratic meme of money control is the most cherished of all dominant social themes." Continue reading →

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U.S. Dollar on the brink of 13-month lows: the long-term consequences

"While the stock market has been rising, the U.S. dollar has been sinking. It’s on the verge of breaking major 13-month lows. It’s not far from reversing everything it gained against a sinking euro during the recent European debt crisis. And once those barriers are breached, it could crash to its lowest level in history. But Washington doesn’t care, and few investors seem to give a damn. They celebrate the fact that, in the near term, a falling dollar helps make U.S. exports more competitive overseas. Plus, they like the fact that a dollar decline temporarily drives global investors away from safety and into risky investments, including U.S. stocks." Continue reading →

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U.S. Funds Score Big by Betting Against Yen

"Wagering against the yen has emerged as the hottest trade on Wall Street over the past three months. George Soros, who made a fortune shorting the British pound in the 1990s, has scored gains of almost $1 billion on the trade since November, according to people with knowledge of the firm's positions. Others reaping big trading profits by riding the yen down include David Einhorn's Greenlight Capital, Daniel Loeb's Third Point LLC and Kyle Bass's Hayman Capital Management LP, investors say. The growing trade has itself helped pressure the yen, which has slid almost 20% in about four months. That, in turn, is helping fuel what could become a world-wide currency war." Continue reading →

Continue ReadingU.S. Funds Score Big by Betting Against Yen

U.S. Funds Score Big by Betting Against Yen

"Wagering against the yen has emerged as the hottest trade on Wall Street over the past three months. George Soros, who made a fortune shorting the British pound in the 1990s, has scored gains of almost $1 billion on the trade since November, according to people with knowledge of the firm's positions. Others reaping big trading profits by riding the yen down include David Einhorn's Greenlight Capital, Daniel Loeb's Third Point LLC and Kyle Bass's Hayman Capital Management LP, investors say. The growing trade has itself helped pressure the yen, which has slid almost 20% in about four months. That, in turn, is helping fuel what could become a world-wide currency war." Continue reading →

Continue ReadingU.S. Funds Score Big by Betting Against Yen