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Currency War

Now Watch Denmark

by John Rubino on February 10, 2015 · 11 comments

One of the reasons we’ve all heard of George Soros is that back in 1992 he pulled off an epic financial coup by “breaking” the Bank of England. At the time the UK was trying to maintain a loose peg with the German Deutsche Mark, despite the fact that the two countries had very different […]


Two weeks ago Switzerland abruptly decided that it couldn’t keep buying billions of euros every month just to maintain a somewhat arbitrary peg with that currency. It stopped trying, allowed the Swiss franc to trade according to market forces, and watched it soar. At the time there was some question about whether an export-centric economy […]


Australia just fired a serious shot in the currency war by cutting its overnight lending rate to a record-low 2.25%. With the aussie as a result tanking, local holders of bank accounts and cash are quite a bit poorer than they were at this time last year. But owners of gold are doing just fine. […]


This Is What It Means To Lose A Currency War

by John Rubino on January 27, 2015 · 68 comments

The term gets tossed around a lot, but the meaning and consequences of a “currency war” aren’t intuitively clear to most people. Especially confusing is the idea that you lose the war when your currency goes up. The suddenly very strong dollar, for instance, should, one would think, be a good thing, since it seems to […]


Can You Just Surrender In A Currency War?

by John Rubino on January 18, 2015 · 40 comments

Switzerland, as everyone knows by now, has slipped out the back door of the drunken orgy that is the modern financial system. And the other revelers are wondering if it’s time to find their own clothes and start tiptoeing towards the exit. Because the Swiss have such a big “mind share” in the world of […]


Germany Caves On Greek Debt; Italy Takes Note

by John Rubino on January 7, 2015 · 94 comments

Global financial markets breathed a sigh of relief today on news that Germany might cut Greece some slack after the latter elects an anti-austerity government: Greek Debt-Relief Talks Possible After Vote, Germans SayGermany is leaving the door open to discussing debt relief with Greece’s next government, lawmakers in Chancellor Angela Merkel’s coalition said, signaling a […]


Really, Greece Again?

by John Rubino on December 21, 2014 · 28 comments

The Greek financial/political crisis is becoming an annual event. For a sense of just how long this unfortunate little country has been struggling to survive under the relative sound money regime of the eurozone, here’s a Greek Crisis Timeline that CNN published in 2011. Even back then the pattern of near-collapse followed by temporary respite […]


Today’s US employment report was, at first glance, the best in years. 300,000+ new jobs, rising wages, fewer people dropping out of the workforce, the whole package. Very hopeful. And also curious, since the rest of the world seems to be moving in the other direction. Consider: British workers suffer biggest real-wage fall of major […]


Most of the World Panics — Is the US Next?

by John Rubino on November 23, 2014 · 36 comments

It’s been quite a month. In late October Japan, despite a year of fairly aggressive quantitative easing, dropped back into recession and concluded that even easier money was the cure for its ills. It announced a debt monetization plan of almost science-fictional proportions in which the amount of new yen to be created, as a […]


Fed Smacks Dollar; Europe and Japan Lose Hope

by John Rubino on October 8, 2014 · 8 comments

The Fed spoke today and as usual it made news — though this time it might actually be real news: FOMC’s fear of a strong dollar drives greenback lowerNEW YORK (MarketWatch) — The U.S. dollar turned lower against rivals Wednesday afternoon after the FOMC released minutes from its September meeting, revealing that members raised concerns […]


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