Tag Archives: Currency Wars

Quote of the Day

“Global imbalances lie at the heart of the current recession; failure to address them will abort recovery and lead to currency wars. Gold can play a minor part in the necessary rebalancing, as Mr Zoellick suggests – although history shows … Continue reading

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‘Firewall needed’ to prevent cash surge – China Daily

We have written in numerous posts about John Bull’s “Tsunami of Dollars” flooding into the emerging markets.   China Daily writes, China should “set up a firewall” as uncontrolled dollar printing in the United States will drive more liquidity into … Continue reading

Posted in BRICs, China, Commodities, Credit, Currency, Equities, Gold, Monetary Policy | Tagged , , , | Leave a comment

Fed creating “grave distortions” – Brazil Central Bank

Brazil is considering additional measures to keep the Real from appreciating  any further.  We like the Economist’s Big Mac Index, which is based on the concept of purchasing-power parity, to get a sense of the over/undervaluation of a currency.  The … Continue reading

Posted in Black Swan Watch, Bonds, BRICs, China, Commodities, Currency, Geopolitical, Gold, Monetary Policy, News, Policy, Politics, Sovereign Risk | Tagged , , , , , | Leave a comment

Geithner’s Naughty List?

Look no further than the Economist’s Big Mac Index to understand who is on the Treasury’s Naughty List.  It uses July exchange rates,  so a bit dated as the most recent currency moves are not included. Interestingly,  Japan and Brazil … Continue reading

Posted in BRICs, China, Commodities, Currency, Monetary Policy, News, Policy, Politics, Sovereign Risk | Tagged , , , , , | 1 Comment

Rio’s $5.00 Big Macs and the Danger of Dutch Disease

Things are getting expensive in Brazil, especially the price of a Big Mac!  Last time we were in Brazil, Big Mac’s were offered at the equivalent of $US.70 at the same time they were bid at US$2.75 in New York. … Continue reading

Posted in BRICs, Commodities, Currency, Equities, Monetary Policy, Sovereign Risk | Tagged , , , | 3 Comments