– Crisis Looms! –
In 2017 or 2018?
Remember the 1988 ECONOMIST magazine cover.
The currency wars are spoken about more often after the BREXIT referendum, and has ratcheted-up again after Trump entered the White House. Read the financial headlines below.
Perhaps the central banks manipulating the currency market are getting conflicting or opposing commands from various interests during this worldwide debt crisis?
The volatility of national currencies has a big role in trade deficits, and debt payments the nations pay to manage their human farms around the world.
That is the international monetary system, and they plan to “reset” it after the next “crisis” summit by finance ministers… ~Ron
The ECB is unlikely to engage “in an explicit currency war,” Vasileios Gkionakis, a strategist at UniCredit, said in e-mailed comments. “I believe it makes little difference for a central bank, as far as its inflation mandate is concerned, if a currency moves from say 1.06 to 1.10 or a bit higher,” he said. The bank says the euro is undervalued by around 10% and sees trading at 1.10 vs USD by the end of the year. –Bloomberg.com
‘Grossly Undervalued’ Euro Has Few Reasons to Maintain Rally
by Stefania Spezzati and Vassilis Karamanis January 31, 2017, 10:58 AM EST
The European Trade Wars Begin: Trump Trade Advisor Accuses Germany Of Using “Grossly Undervalued” Euro
Jan 31, 2017 9:54 AM Zerohedge.com
Currency wars: Which countries are ‘manipulating’ the markets…
…Trump’s top trade adviser Peter Navarro launched a broadside at Angela Merkel this week, accusing Germany of profiting from a “grossly undervalued” currency.
At the same time the President said countries such as Germany, China and Japan are responsible for “global freeloading” in part due to their weak currencies.
Trade relations are top of the new President’s list of concerns, as he blames other nations for, in his view, unfairly luring manufacturing jobs away from the U.S.