Currency Wars?

By Econ70 | 08/11/2011

Declaring the Yen’s rise to be a threat to the economy the Bank of Japan massively intervened in the foreign exchange market to drive down its value. The Swiss did the same thing and now so are the Turks! I bet these interventions will become more common because expansionary fiscal policy is in deep hibernation…

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Debt Ceiling Debacle

By Econ70 | 07/27/2011

Debt Ceiling Debacle: In the foreign exchange (FX) market commodity-sensitive Australian and New Zealand dollars have hit record highs. Gold is also galloping upwards. There is also a strong desire to hold super safe Swiss Francs. Banks and money market funds are also rapidly boosting liquidity (hurting equity prices). All this is being done by…

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