Bernanke’s aggressive move on monetary policy will have important international consequences, intentional or not. The ECB, Bank of Japan and PBOC will all be under even greater pressure to respond with more aggressive policies as their economies are in no position to tolerate US-exported deflation, especially with oil prices rising. As currency wars are re-ignited, there will be forceful action to retaliate against dollar weakness. Despite the sugar-rush, aggravated economic and political tensions will not support risk appetite. By default, the Swiss franc is likely to see renewed upward pressure as defensive capital ... (full story)