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Japan’s new Prime Minister Shinzo Abe has become the author of another chapter of modern history of the world currency wars. He accused the central banks of the USA and the European countries of steps leading to the strengthening of the Japanese yen and other national currencies against the dollar and the euro.
2013 will be the year of currency wars, and the country having the weakest economy will be the winner. Most likely, this will be the USA. The US Federal Reserve System has launched 3 programmes aimed at quantitative easing of the national economy and again started money-printing. The reason is clear: the USA wants the dollar to remain the world reserve currency.
They acknowledged though that the Bretton Woods Agreement had exhausted itself and that the world is on the threshold of creating a new currency.
Originally posted by GBP/JPY
good read but the Yen needs to get stronger for the exporters....it goes by seasons and a little known bank policy is the reason for this rise back to where it was before the 2008 collapse... I 'm making a killin'edit on 25-12-2012 by GBP/JPY because: Yahuweh...the coolest of names, I swear
This debate plays out against a dramatic and frightening global outlook. It was captured this week by Alan Kohler writing in The Australian: "The dirty secret of the US Federal Reserve is that it's engaging in a surreptitious currency war using quantitative easing to depreciate the currency. The Fed is effectively giving other countries two choices: allow your currency to appreciate against the US dollar and thus make your economies less competitive and crunch your export industries or print money with us and risk (or perhaps guarantee) inflation."
The whole 'quantitative easing' lunacy is an act of sheer and utter panic and desperation. QE is making things much worse, not better. Now even Americas 'friends' are turning their backs on America.
Originally posted by Cinrad
Is Australia talking about trading internationaly solely in the yuan or making it another currency that can be converted directly without having to convert to US dollars first?
Originally posted by pikestaff
Just why have the Chinese bought over 500 tons of gold this year? and large amounts of gold in previous years? why do they need that much gold? is it to back their currency when it floats?
Originally posted by Qubert
I've heard that the Chinese have done something pretty risky... That they haven't floated the Yen. Which means something along the lines of allowing it to perform on international markets without artificially manipulating it.
Can anyone that knows shed some light on this?
If so... how risky is it for them? Or could it just be tactic, taking into account all that we hear about China e.g. rising middle class and a whole lot of manufacturing. Or info from articles I've seen on ATS: Bought one of the biggest movie theater chains in the US (sure this may be bad news if movie theaters are moving into our living rooms i.e next generation netflix), or planning on building farms on Mars... it seems like one just keeps hearing things like this. Ergo if they do float their currency, would it turn out to be pretty weak or would it stand strong (based on the bigger picture, not just what the movie theater and Mars grocery examples.)edit on 25-12-2012 by Qubert because: (no reason given)