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Tag Archives: Currency War

Wall Street Piles into Cryptocurrencies, Others Speak of “Biggest Scam Ever”

I don’t remember ever having seen crazier times of more pandemic proportions. “It is the biggest scam ever, such a huge gigantic scam that’s going to blow up in so many people’s faces. It’s far worse than anything I was ever doing,” explained Jordan Belfort concerning ICOs (initial coin offerings) of cryptocurrencies. The former penny-stock broker portrayed by Leonardo DiCaprio in The Wolf of Wall Street should know: He spent 22 months in the hoosegow for securities fraud and...

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Rickards Warns “Prepare For A Chinese Maxi-Devaluation”

Authored by James Rickards via The Daily Reckoning, China is a relatively open economy; therefore it is subject to the impossible trinity. China has also been attempting to do the impossible in recent years with predictable results. Beginning in 2008 China pegged its exchange rate to the U.S. dollar. China also had an open capital account to allow the free exchange of yuan for dollars, and China preferred an independent monetary policy. The problem is that the Impossible Trinity says you...

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De-dollarization Not Now

USD-denominated debt outside the US hits record – even junk bonds. China announced today that it would sell $2 billion in government bonds denominated in US dollars. The offering will be China’s largest dollar-bond sale ever. The last time China sold dollar-bonds was in 2004. Investors around the globe are eager to hand China their US dollars, in exchange for a somewhat higher yield. The 10-year US Treasury yield is currently 2.34%. The 10-year yield on similar Chinese sovereign debt...

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The Hated Dollar Resurges. But Why?

Betting against the dollar remains a favorite sport. The dollar has done – as it so often does – the opposite of what was expected. Last December, the Fed raised its target for the federal funds rate and indicated that this time it was serious about tightening and that it wouldn’t flip-flop anymore. Two weeks later, the dollar, after surging much of 2016, turned around and headed south in defiance of the Fed. On September 8 intraday, the dollar index (DXY), which tracks the dollar...

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Euros, Dollars and Central Bank Manipulations

The primary purposes of the incorrectly named “unconventional monetary policies” are to debase the currency, stoke inflation, and make exports more competitive. Printing money aims to solve structural imbalances by making currencies weaker.In this race to zero in global currency wars, central banks today are “printing” more than $200 billion per month despite that the financial crisis passed a long time ago.Currency wars are those that no one admits to waging, but everyone wants to fight...

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Rickards: “There Are Three Things Going On With Gold Right Now”

Authored by Craig Wilson via Daily Reckoning blog, Jim Rickards joined Kitco News and Daniela Cambone to discuss the latest news and analysis from gold markets, geopolitics and even bitcoin.  The Wall Street veteran took on the bigger picture facing metals investors and what could be just around the corner in a bubbling market. Jim Rickards is the editor of Strategic Intelligence and is the New York Times best-selling author of The Road to Ruin. Rickards’ worked on Wall Street for decades...

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The US and the World: Wolf Richter on the Keiser Report

“These things can go on for a long time — until they can’t…” Here I am with Max Keiser on the Keiser Report, tackling the global schemes of our crazy times: the shifting economic relationships between the US, its allies, and China whose authorities are trying furiously to keep the precarious bad-debt-burdened financial system from imploding. Enjoy the video… The upside of the control Chinese authorities have over their banking system is fake stability. The downside...

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Rickards Fears September Meltdown – “1000 Point Drops, Or A Closed Exchange?”

Authored by Craig Wilson via The Daily Reckoning, Jim Rickards joined Alex Stanczyk at the Physical Gold Fund to discuss current destabilizing factors that could drastically impact investors. During the first part of their conversation the economic expert delved into gold positioning for the future, the expanding threats from North Korea and liquidity in global markets. To begin Rickards’ was prompted on his latest analysis over North Korea and the international threat the country poses going...

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So When Will China’s Debt Bubble Finally Blow Up?

The upside is fake stability. The downside is too ugly to contemplate. Corporate debt in China has soared to $18 trillion, or 169% of GDP, the largest pile of corporate debt in the world, according to the worried Bank for International Settlements. The OECD has warned about it earlier this year. The New York Fed warned about this debt boom in February and that it could lead to a “financial crisis,” but that authorities have many tools to control it. The IMF regularly warns about...

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Two of Mexico’s Biggest Bugbears Surge Again

Footloose hot money that has flooded Mexico can quickly dry up. By Don Quijones, Spain, UK, & Mexico, editor at WOLF STREET. After several consecutive months of predominantly positive developments, including the governing Institutional Revolutionary Party’s recent electoral victory in its key state, Estado de Mexico, the outlook for Mexico’s economy is no longer negative; it’s stable. That’s according to rating agencies, Fitch and Standard’s & Poor. It’s a remarkable turnaround...

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