Analysis Topic: Currency Market Analysis
The analysis published under this topic are as follows.
Sunday, November 07, 2010
Bernanke Delivers QE2 Last Rites for Dollar as Worlds Reserve Currency / Currencies / US Dollar
By: Mike_Whitney
Millions of Americans have no idea what Quantitative Easing is or how it will effect them personally. That's why Wednesday's announcement that the Fed will purchase another $600 billion in US Treasuries merely reinforced feelings of helplessness and a sense that government spending is out-of-control. Unfortunately, Ben Bernanke's rambling explanation of QE2 in a Washington Post op-ed on Thursday only added to the confusion. The article is loaded with half-truths and omissions that are meant to mislead the public about how the program works and what the Fed's real objectives are. It's another missed opportunity by Bernanke to come clean with the people and let them know what policies are being enacted in their name. Here's an excerpt from the article:
Saturday, November 06, 2010
Seven Bullish U.S. Dollar Charts You Should See / Currencies / US Dollar
By: Bryan_Rich
The currency market, as well as all markets, have been heavily focused on the U.S. and the Fed’s plans for more quantitative easing (QE).
And that’s had a huge impact on the dollar and on dollar sentiment.
Read full article... Read full article...
Friday, November 05, 2010
Fed Quantitative Easing 2, One of the Greatest Blunders in History / Currencies / US Dollar
By: Toby_Connor
Many years from now when we look back at history I think yesterday will be seen as one of the greatest blunders ever made by a central banker.
The dollar was already headed down into a major 3 year cycle low.
Wednesday, November 03, 2010
More Real Bill Fallacies / Currencies / Fiat Currency
By: Professor_Emeritus
In the first article of my two-part series on the Real Bills Doctrine (RBD), in commenting on the Daily Bell's interview with Professor Lawrence H. White on October 10, 2010, I made the central point that the source of commercial credit is not saving but consumption. The following example will dramatize this point. Assume for the sake of argument that all banks in the whole wide world succumb to the sudden death syndrome simultaneously. What does this mean in terms of the production and distribution of consumer goods? Would we have to go back and start from scratch to save in order to replenish society's circulating capital? Saving is a time-consuming process and people have to get fed, clad, shod, and sheltered in the meantime. We could not restore circulating capital through saving for the simple reason that before we could we would die of starvation.
Tuesday, November 02, 2010
Gold and Real Bills / Currencies / Fiat Currency
By: Professor_Emeritus
The Daily Bell published an interview with Dr. Lawrence H. White, Professor of Economics, George Mason University, on October 24, 2010. One of the questions the interviewer asked was this: "Please comment on real bills and how they work."
In his answer Professor White gave the following example. Joe the Baker buys flour from Bob the Miller and gives him a bill promising to pay $1000 in 90 days.
Read full article... Read full article...
Tuesday, November 02, 2010
Explaining Japanese Yen Strength Despite Weak Economy / Currencies / Japanese Yen
By: Kieran_Osborne
For many, the strength of the Japanese yen is a conundrum. How can the currency of a country with such a weak economy, such a high level of debt, weak leadership, poor demographics, combined with an ever deteriorating economic outlook be so strong? Many market participants did not anticipate that the yen would demonstrate such strength 24 months ago. Now, many commentators focus on Japan’s “safe haven” status as a key reason why the currency has appreciated.
Sunday, October 31, 2010
Currency War: “The Worst of Wars" / Currencies / Fiat Currency
By: Bryan_Rich
Last week, here in Money and Markets, I suggested that the recent G-20 finance minister meetings could have a meaningful influence on the next trend in global currencies and other key markets. Therefore, we should pay very close attention to market activity.
I also suggested that this “influence” could be in the form of a coordinated intervention by G-4 economies (U.S., U.K., euro zone and Japan) to weaken the yen, a viable antidote to the bubbling and divisive currency tensions.
Read full article... Read full article...
Friday, October 29, 2010
Keep Your Head Above the U.S. Dollar / Currencies / US Dollar
By: Peter_Schiff
There has been so much discussion recently about "QE 2" that you would think the entire financial sector were about to embark on a transatlantic cruise. Unfortunately, they, and we, are not so lucky. In the year 2010, "QE 2" doesn't refer to a sumptuous ocean liner, but a second, more extravagant round of "quantitative easing" - stimulus. In the past, this technique was simply called "printing money." As if the nation has not already suffered enough from the first round, Captain Ben Bernanke and the Fed are determined to compound the damage by hitting us with another monetary juggernaut. Their stated goal is to boost the economy and create jobs. However, since economic growth cannot be achieved by printing money, their QE 2 will sink just as surely as the Titanic.Read full article... Read full article...
Friday, October 29, 2010
EUR/GBP Recovery Repelled by Key Resistance / Currencies / British Pound
By: Seven_Days_Ahead
Following the earlier fall in the EUR/GBP cross a recovery phase has been in process since the June low. However, this has now seen a test of a key resistance area, with the market accordingly pulling back.
Friday, October 29, 2010
G20 Currency War One Sided Compromise / Currencies / Fiat Currency
By: Peter_Schiff
Last weekend, the G-20 finance ministers met in South Korea to find areas of agreement in preparation for the main G-20 gathering in November. The Chinese rebuffed renewed American pleas for them to revalue their yuan. They rejected Secretary Geithner's suggestion of a four percent cap on current account surpluses. However, in return for accepting America's continued dollar debasement, the Chinese did agree to "look into" a revaluation of the yuan and the management of trade surpluses. They also agreed to an international self-policing regime to curb currency manipulation. This 'one-sided' compromise was hailed in the Western media as a triumph for Mr. Geithner. The US stock markets and dollar rallied. All looked good for the election season in November.Read full article... Read full article...
Thursday, October 28, 2010
CURRENCY WARS, Debase, Debt Default and Deny! / Currencies / Fiat Currency
By: Gordon_T_Long
In September 2008 the US came to a fork in the road. The Public Policy decision to not seize the banks, to not place them in bankruptcy court with the government acting as the Debtor-in-Possession (DIP), to not split them up by selling off the assets to successful and solvent entities, set the world on the path to global currency wars.
By lowering interest rates and effectively guaranteeing a weak dollar through undisciplined fiscal policy, the US ignited an almost riskless global US$ Carry Trade and triggered an uncontrolled Currency War with the mercantilist, export driven Asian economies. We are now debasing the US dollar with reckless spending and money printing with the policies of Quantitative Easing (QE) and the expectations of QE II. Both are nothing more than effectively defaulting on our obligations to sound money policy and a “strong US$”. Meanwhile with a straight face we deny that this is our intention.
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Wednesday, October 27, 2010
U.S. Dollar Index Impact on Precious Metals / Currencies / US Dollar
By: Ronald_Rosen
Since there is so much concern and conviction that the U.S. Dollar is about to collapse and the precious metals complex is about to rise sharply, let’s take a close look at where the Dollar Index has been, what if anything in the precious metals complex it has influenced, and where it may be going.
Wednesday, October 27, 2010
U.S. Dollar USD Index Trend Forecast Update / Currencies / US Dollar
By: David_Petch
The present action of the USD is congruent with the various forms of quantitative easing at the moment. All forms of paper currency are becoming weakened as all larger governments expand their fiat. If China and the US goverments add alot of paper, it can be converted into other currencies or assets. IF the funds are converted to say Canadian dollars, the Canadian currency was just indirectly debased. This is due to global conversion from one currency to another. Any country that produces anything in the coming years is going to see strength in their local currency, which in turn will increase with demand.
Tuesday, October 26, 2010
G20 Failure Means Currency War Continues / Currencies / Fiat Currency
By: Money_Morning
Don Miller writes: Despite securing an agreement from Group of 20 (G-20) officials to avoid weakening their currencies any further, the Obama administration failed to convince member countries to implement specific guidelines to measure compliance and monitor trade imbalances.
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Monday, October 25, 2010
Currency Wars, Ficitious Deflation Propaganda and Gold / Currencies / Fiat Currency
By: Howard_Katz
This past weekend the Group of 20 nations met to discuss the value of their currencies. These discussions are being called “wars” in the general media because, although there is no actual shooting or dropping of bombs, each nation approached them with the attitude appropriate to a war. “I’m going to get mine at the expense of my neighbor.” To sum up the positions of all the nations at the talks:
Saturday, October 23, 2010
G20 Meetings Could Prove Very Important for Currencies / Currencies / Fiat Currency
By: Bryan_Rich
While many investors have their eyes on the G-20 Summit in November, this weekend’s gathering of G-20 finance ministers could prove to be the more significant event for markets.
If you take a look at recent history, I think you would agree.
Read full article... Read full article...
Saturday, October 23, 2010
Brazil Trys Some Old-Fashioned Capital Controls First / Currencies / Brazil
By: Paul_L_Kasriel
Richard Thies writes: With the second round of the Brazilian presidential election set for October 31st, we thought it would be a good time to focus on the country and steps the next administration can take to limit growing imbalances in the economy as well as the strength of the real. The election has gone mostly unnoticed by markets, in sharp contrast to the 2002 contest, but one need only look to the last few weeks to understand the importance of the vote.
Saturday, October 23, 2010
Don't Fear the Euro Currency / Currencies / Euro
By: Michael_Pento
When the euro hit a low of $1.1917 against the US dollar on June 7th, 2010, the airwaves crackled with assertions that the European common currency, beset by Greek debt problems and intra-union discord, was destined to trade at parity with the greenback. They were wrong. Since then, the euro has risen over 17% against the dollar, hitting $1.3961 today. The current upswing, delivered courtesy of the Fed, has at least temporarily silenced the euro's critics. It should also serve to impugn the notion that the US dollar holds a permanent position as the world's reserve currency.
Friday, October 22, 2010
U.S. Dollar Current Account Woes / Currencies / US Dollar
By: Andy_Sutton
Amid the recent rout of the USDollar, fears of an all-out trade war have been stoked globally. The G20 finance heads are currently struggling to find common ground on current account imbalances that will avert the inevitable. The point should not be lost on anyone that none of these leaders are really concerned about why these imbalances exist, but rather are only focusing on avoiding the negative consequences of poor fiscal behavior stacked up over the past several decades.
Thursday, October 21, 2010
Will the U.S. Treasury Defend the Dollar? / Currencies / US Dollar
By: Gary_Dorsch
“Everything depends on proper listening. Of ten people who listen to the same speech or story, each person may well understand it differently. Perhaps, only one of them will understand it correctly.” How should traders interpret the latest remarks by US Treasury chief Timothy Geithner, who shocked the currency markets on October 18th, citing his determination to defend the value of the US-dollar?