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Good Day Friends
I just read this very interesting article on the Currency Wars. This could be a very interesting trading week.
Good Trading and enjoy your week.
Snippet:
Japan’s well documented struggle against deflation is something which new Prime Minister Abe has no more time for. Abe has made it clear that he is prepared to take the remit of the central bank back under the government’s control. Pushing for the central bank to raise the inflation target back in January to 2%, Abe has now seen his currency plummet. A situation which is unlikely to change given the new Central Bank governor in the coming month.
Follow that central bank!
As we wrote early last month, we are seeing a change in the nature of central bankers, not just in Japan but across the developed world. The central banks are looking to extend their remit. It’s no longer about looking after monetary policy, it’s now becoming increasingly more to do with finding the right medicine to bring the economy back to full strength.
Gold is up in the aforementioned currencies because of they’ve lost value in recent months, adding to the years and years of abusive monetary policy. All currencies are in this currency-war – being pitted against one-another, only one can be at the bottom and one at the top. But they’re all in it. At the moment the US Dollar and the Indian Rupee are losing in the race to debase, as Japan takes the lead. But as we see from the graph at the beginning, they’re all heading to the same end point.
For example, don’t forget we are also about to see the second anniversary of the US’s QE1 in less than a week. Since that time we’ve seen gold increase from $924.27 to $1,577. Despite much speculation that the hawks of the FOMC are circling, QE infinity looks set to continue well into 2013. The more dollars, or any currency in fact, which are created the less they are worth.
It’s all down to central banks. You may say that not all banks are so easy with monetary policy, the creditor nations. They’re the ones who are buying gold. But look at it this way, the East and West central banks may well look as though they are carrying out completely different approaches but in fact, both are doing wonders for the those who have chosen to invest in gold.
Good Day Friends
I just read this very interesting article on the Currency Wars. This could be a very interesting trading week.
Good Trading and enjoy your week.
Snippet:
Japan’s well documented struggle against deflation is something which new Prime Minister Abe has no more time for. Abe has made it clear that he is prepared to take the remit of the central bank back under the government’s control. Pushing for the central bank to raise the inflation target back in January to 2%, Abe has now seen his currency plummet. A situation which is unlikely to change given the new Central Bank governor in the coming month.
Follow that central bank!
As we wrote early last month, we are seeing a change in the nature of central bankers, not just in Japan but across the developed world. The central banks are looking to extend their remit. It’s no longer about looking after monetary policy, it’s now becoming increasingly more to do with finding the right medicine to bring the economy back to full strength.
Gold is up in the aforementioned currencies because of they’ve lost value in recent months, adding to the years and years of abusive monetary policy. All currencies are in this currency-war – being pitted against one-another, only one can be at the bottom and one at the top. But they’re all in it. At the moment the US Dollar and the Indian Rupee are losing in the race to debase, as Japan takes the lead. But as we see from the graph at the beginning, they’re all heading to the same end point.
For example, don’t forget we are also about to see the second anniversary of the US’s QE1 in less than a week. Since that time we’ve seen gold increase from $924.27 to $1,577. Despite much speculation that the hawks of the FOMC are circling, QE infinity looks set to continue well into 2013. The more dollars, or any currency in fact, which are created the less they are worth.
It’s all down to central banks. You may say that not all banks are so easy with monetary policy, the creditor nations. They’re the ones who are buying gold. But look at it this way, the East and West central banks may well look as though they are carrying out completely different approaches but in fact, both are doing wonders for the those who have chosen to invest in gold.
