World on threshold of currency wars

Looks like Americas little buddy Japan is getting very angry about America starting a Currency War that is damaging Japans economy.

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.

english.ruvr.ru...

It is clear that America is gasping. Will it be one of Americas 'friends' that puts America out of its misery? We all know that the US economy can only exist while they maintain the Reserve Currency. 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.

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.

The US needs the Reserve Status. It is losing it fast. This article ends by claiming that we are on the threshold of a new global currency being created.

They acknowledged though that the Bretton Woods Agreement had exhausted itself and that the world is on the threshold of creating a new currency.

english.ruvr.ru...

I am happy for a new Global Currency to be created as long as America does not control it.

America gave themselves all the cards after WW2 and they have shown time and time again that they cannot be trusted. America cant run an economy.

America stuffed up their economy with the Vietnam War which destroyed confidence in the USD. Countries were trading in their USD for gold and America was doomed. But Nixon just decides he can change the rules and tells everyone the 'gold window' is closed. hmm. Thats what happened so dont let me hear you patriots babble about gioing back to the Bretton Woods System because you already stuffed that up once. You dont get another chance. And you solved the lack of demand for the USD by forcing the world into the petrodallar set up. This forced nations to settle international trade in USD. So America could continue on their merry way abusing the Reserve Status as if it was a stolen credit card until America has an unpayable 16 trillion dollar National Debt.

Im sorry America but you failed to keep your leaders in check. The world is not going to give you yet another chance. Your days are numbered and you know it.

The Reserve set up has been flawed since day one. Triffin explained that it is a paradox to have a country controlling a currency that acts as a domestic currency as well as a reserve currency. Nixons secretary of finance John Connally once told a shocked world "The dollar is our currency, but your problem". Well its your problem now America. Your problem.

No more chances. This is it.

How America responds to its loss of status will determine how it is treated in the future. If America cant face reality and acts like a child, which is likely, then Americas future will be alot worse than it already will be.

Be mature about this America. You are not the greatest and you never were. You were a jerk. Now that you are just a regular country, maybe you can start winning some of your friends back. QE isnt going o do it. America must face reality and stand down. Give up the Reserve Status without a fight. It will win you some much needed respect.

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'

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

The Japanese exporters need the Yen lower. The currency War that America has unleashed has also driven the AUD higher and infuriated Australian exporters. It si also making amny political commentators furious. America should not be doing this to its friends. I know Canadas Central Bank is in on the scam but Australians and the Japanese are not as stupid as Canadians I guess. Or gullible.

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."

www.theaustralian.com.au... 24

Tow choices he says. Hurt exporters or devalue your currency along with the US, Canada, Europe and friends.

Stuff that. Australia can hurt America if it wants to be a jerk. And we will.

bad link ^? This on the heels of Australians just announcing they'l trade with Yuan

reply to post by spangledbanner

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.

Our paper misers are hoping people won't panic (until its too late) and then it won't matter any more. The rest of the world is already preparing for the eventual demise of the dollar as it is only backed with ink. They are planning ahead.

Americans know where their intrinsic wealth and tangible "ass" is. The aren't fooled by the borrowing ad infinitum. They are planning to throw us over a cliff though.

"We're so sorry, no matter how hard we tried we just could not help but impose austerity measures like the EU here too."

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.)

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?

reply to post by Qubert


Firstly Japan = Yen; China = Yuan

Yes the Chinese have not floated the Yuan on the International currency exchange, and it is basically tied to the rise and fall of the US dollar, which has upset the Americans greatly. and rightly so.

Yet the Chinese occasionally raise the value of the Yuan slowly and just a little bit, to help slow their economy down to stop it overheating and creating bubbles. It also means their economy wont be hit as hard when & if they do eventually float it on the international Foreign Exchange markets.

China is expanding their financial power world-wide slowly by slowly doing deals between China and other countries around the world, in their own Currency, the Yuan, and the trade countries own currency.

If the Chinese suddenly float the Yuan, trust me on this, the Value of it is going to go up tremendously (because China is a power-house and everyone buys stuff from there; thus becoming the worlds reserve currency because it will be traded soo much), thus heavily impacting Chinese exports and causing manufacturers to move base to other countries trying to find the cheapest labour and goods. It will create mass unemployment, and goods from China will increase in price around the world.

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?

I don't believe so. I believe these are just single deals. Probably large mining & gas deals.

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 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?

To protecy against the future US Scam of returning to a Bretton Woods type system. The US does have alot of gold but thats if you believe them. The US and IMF together have massive amounts of gold. China is making sure that America and the IMF cant pull a swifty on them.

china will just make cheap knockoff copies of it's own currency that contain lead and cause workers to kill themselves

true story

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)

My only assumption is that one night you'll be sleeping, and the next day you'll wake up to
China owning the world.

Oh wait, that already happened.

China divested 97 percent of US long and short term t-bonds in November and released
a gold hedged currency via the central bank of China in which they utilize for trading oil.

Imagine if China owned all of Canada's oil. Oh my god.
business.financialpost.com...

CSIS warned us about a threat to national security.

“CSIS did not like the Nexen bid and thought it was a bad idea for Chinese firms to be investing in the oil sands. It all played into their greater fears about firms like Huawei,” said one person familiar with the agency’s concerns. “They do not want to wake up one day and realize a crucial sector of the economy is under the control of foreign interests.”

Asked about the CSIS concerns, a spokeswoman for Industry Minister Christian Paradis replied: “The government has the authority to take any measures it considers necessary to protect national security.”

(Does this mean that Canada is at apprehended or real war with China?)

Frankly I do not see any of this. Firstly the US dollar is a safe haven currency. We can agree that this may change. The only major driver in all of the currency seems to be marked forces. In fact in terms of currency the US dollar is independent of the US economy. as I have seen several instances over the last two years where the US economy has slipped downhill but the Dollar has RISEN on the global currency markets.

Rgds

Tiger5

reply to post by spangledbanner


So who appointed you to talk down to the USA??

reply to post by spangledbanner


Welcome back, Germanicus.

As you know, this is a game of chess and not of checkers. BRICS might use their currency as a reserve amongst themselves, but when they speak of the reserve currency during the G8 or G20, it is always in the context of creating a new global currency. US leaders speak of this as well.

The question is not whether there will be a global reserve currency, but who gets to control it. Perhaps a new uni-polar entity.

Saddam hussain and Ghaddafi were two leaders who wanted to trade by different currencies than the petro dollar and we all know what happened to them.....Iran,India Russia,China,Venezuela and now japan and maybe Australia are starting to do the same....Can America go ahead and take them leaders all out?!...I don't think so...So yes dollar is not looking good these days at all, and seems like it will only get worse,...Considering dollar to be one of the very few bullets left in America's gun,they should play their hands very wisely.

reply to post by METACOMET


Sure sounds like him! China is the best, blah, blah, blah.

The Japanese Yen is at a low against the dollar (dollar strength)...lowest point of the year (1.17190) and it is probably headed for for 1.15000 based on a chart read. There will be a new global currency but it isnt ready yet. It will probably be nominally backed by gold and/or a basket of commodities (more like a reserve requirement than totally backed).

reply to post by GBP/JPY


What will be the point of repeating past mistakes, the reserve currency in my opinion should be based on a basket of currencies and those that would benefit from the uplift, for instance the BRIC for now, a mutable group of the fast growing economies would be a saner option, revised every 5 years for instance, that would not only give incentive to required optimizations (growth is dead, no one believes that there can be infinite grown in a finite system) but permit others to share the benefits and stabilize the world economy.