Currency Wars

Stacy Summary:   As part and parcel of this year’s sovereign debt crises, the accompanying currency wars are going to cause the most noticeable consequence to the man on the street.  I have spoken to people who lived through a currency crisis and the trauma was still visible a decade later.  Anyway, no doubt this blog post from Jesse will trigger much conversation . . .

32 thoughts on “Currency Wars”

  3. Creative Destruction

    @ Ptah

    Turn that frown upside down. That’s what the banks did when they made the governments eat their losses.

  5. Creative Destruction

    @ Mike/Liverpool

    Reminds me of the line by Hemingway about one of his characters going broke – very slowly at first, then all at once.

    And one more thing: gold is not getting killed, fiat currencies are killing themselves softly. Gold is just a temperature gauge.

  7. FreeMarkets

    @FiatMentalists – I agree with you – fork tongue and all that. Very close to the intl’s!

  8. Mother Earth

    We need SDRs to do international settlements? What do we need those for?

    This is like “You need the Starwars cape to go with the starwars gun”.

    You don’t need the frikin gun.

  9. Troy Ounce

    Jesse is great.

    Yeah, we’re being ruled by a bunch of cynical gangster.

    We, with the help of the internet, will destroy them, though.

    Transparency to the financial gangsters is like the mirror to count Dracula

  11. Marc Authier

    The British are about to hang their parliament. Good idea. I got some real strong rope if you need some. :)

  13. Marc Authier

    British election results today. Hope we will have some fun with the hanging of parliament. “Parle et ment” Parlement we say in french. “Talk and lie”.

  14. Martijn

    Has the UK treasury already released the info regarding Brown’s bottom it was supposed to?

  17. The Dork of Cork

    Yes I believe silver is going to crash and gold to soar as the US stock market crashes.
    I just hope that my Euros hold some value as I wish to pick up silver on the cheap.
    US companies are very dependent on Euro revenue – in Ireland we are very familiar with this process as we are essentially a conduit for US companies who wish to channel revenues back to New York.

  18. frances snoot

    Of COURSE the reserve asset will not circulate like a currency: everyone knew that, right? The idea is to end imbalance between regional currency blocs (aka former sovereign territories). Unfortunately, the inordinate privilege will extend to those who retain assets denominated within the sdr unit. Those would be the same criminals who fostered their own advantage through basel regulations.

    Oh, I’m speculating.

    No wonder the press is sucking up more than ever: well, is it preferable to be a barnacle on the lifeboat? (I think not: when do you get a breath of fresh air?)

    Neo-colonialism is being pursued in every form through the ‘aide’ being giving to the emerging economies via IMF SBA/credit facilities/sdr transfers.

    O’Niell talked about the yuan being traded on the forex. (hahahaha) What a lie. These guys don’t want to share their export profit: its their own trade ‘currency’: they’ll give us ‘our democracy’ instead of access to liquidity.

    When does the shtf? Santa says Christmas (sdr reweight, yuan added?):

    “FT: Is there going to be a tipping point, a moment at which the dollar is fatally weakened? Or does it just sort of carry on?

    GS: As long as the renminbi is tied to the dollar, I don’t see how the decline in the dollar can go too far. Now, of course, to some extent it’s very helpful because with the US consumers saving more and spending less, exports can be way for the US economy to be balanced. So, an orderly decline of the dollar is actually desirable.”

    http://www.ft.com/cms/s/0/6e2dfb82-c018-11de-aed2-00144feab49a.html?catid=20&SID=google&nclick_check=1

    (That would be George Soros, not Goldman Sachs…funny they have the same initials!)

  19. Marc Authier

    Gordon’s bottom is Brown. Couldn’t stop myself. It’s soo yummy specially an election day.

  23. frances snoot

    We need SDRs to do international settlements? What do we need those for?

    SDR’s are the unit of account at the heart of our international financial system, Mother.

  27. frances snoot

    Well, Angel’s quote is this:

    “The crisis has given birth to a new and more inclusive global governance. We are all aware of this fact.”

    Does this align with Jesse’s astonishing prelate?

    “But from a portfolio perspective it could be useful to take some of the power to control the world’s money supply away from the Anglo-American banking cartel and its politicians who have proven themselves to be unworthy of such a great responsibility.”

    Did the Anglo-Americans control the money supply? What function has the BIS had within the international system? What function the exchange rate index and how will the change to a new system of exchange rate valuation affect world currency value? (change to a ‘multilateral’ system run by a central/global regulator based on inflation flucutations) Will the new governance be run from EU institutions/law?

  31. Pez

    “I realize that the SDR is just another fiat currency, a somewhat artificial construct for the accounting of international trade, a fiat of fiats if you will. It may even be inherently unstable in the midst of the controlled demolition of most fiat currencies that is now underway.”

    It’s more like, the ship is going down. Which life boat should I take? hmmmm let me think. I’ll go with the lifeboat with the fat people, they’ll make good eats later!

    We’re all doomed…except the ultra-wealthy, god’s chosen ones.

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