Tuesday, February 05, 2013

Apocalypse Money Games

If you're inclined to survivalism, this little item will put spurs into your ribs.

Central banks all over the world are flooding the zone with money hot off the press, all in the name of stimulus. Even a country such as Switzerland, with a traditionally stable currency and low inflation rates, finds itself caught in the dance. How can it afford to let the Swiss franc appreciate against the currencies of its commercial rivals? The powers-that-be in Switzerland have concluded that they can’t, and they may have a better excuse than Ben Bernanke et al., whose commitment to keep doing what isn’t working continues unabated.

Now quoting from the WSJ:

 ...Since the end of November, when it became clear that Shinzo Abe and his agenda of growth-at-all-costs would win Japan’s elections, the yen has lost more than 10% against the dollar and some 15% against the euro. The greenback last week plumbed its lowest level against the euro in nearly 15 months.

These moves are angering export-driven countries such as Brazil and South Korea. But they also are stirring the pot in Europe. The euro zone has largely sat out this round of monetary stimulus and now finds itself in the invidious position of having a contracting economy and a rising currency


1 comment:

Anonymous said...

I pooped and wiped with a Yen note. Konichi wa!