Post Tagged with: "protectionism"
Currency manipulation
By Michael Pettis On Friday the US Treasury released its presumably semi-annual (it was due last October) report to Congress on currency issues, and in it refrained from calling any of the countries under review “currency manipulators.” Today’s People’s Daily had this to say : Major trading partners of the United States, including China, did
China as the Bad Guy?
In anticipation of the state visit by Chinese Leader Hu Jintao, I spoke about the pressure on US politicians to do something about the Chinese currency problem with RT America’s Alyona Minkovski on the Alyona Show last night. The video is below. My take here is that the pressure on Obama to do something, anything
Wait for the next crisis for reform of the monetary system
There has been a lot of chatter of late about countries ditching the US dollar as the primary reserve currency and moving on to something else. Robert Zoellick mentioned gold as the alternative. Nicolas Sarkozy has been talking up special drawing rights and the Russians and the Chinese recently decided to open an exchange to
Brazil: we expect to see a continuation of the currency war in coming months
The Brazilian finance minister Guido Mantega continues to worry about the flood of money coming from Europe and the US and has said Brazil will take more steps to defend its currency. Mr. Mantega was quoted saying "With the situation in Europe under stress, we expect to see a continuation of the currency war in
Gross: ‘The global economy is suffering from a lack of aggregate demand’
The debt overhang in the developed world has lowered aggregate demand globally. As developed economies compete over a dwinding pie by moving toward a policy of economic nationalism, investment opportunities will dwindle. Bill Gross advises looking to the emerging economies instead
Krugman, China and the role of finance
by Michael Hudson Here’s the quandary that the U.S. economy is in: The Fed’s quantitative easing policy– creating more liquidity so that banks can lend more – aims at helping the economy “borrow its way out of debt.” But banks are not lending more, for the simple reason that a third of U.S. real estate
Dollar War in Detail
Eric Janszen, Interview with Dr. Michael Hudson 6 November, 2010 Janszen (E): What I’m noting, starting with the gold crisis over the last few weeks, and the public nature of some of the complaints that we’re hearing out of Brazil and China and the front page of the Financial Times, we seem to be heading
China Curbs Shouldn’t Derail CNY Appreciation
by Win Thin China took more efforts aimed at “further curbing inflows” with measures designed to “maintain China’s economic and financial security.” The measures appear to be relatively mild, but like Brazil, China may end up tightening controls further as needed to meet their FX goals. FX regulator SAFE announced new rules on currency provisioning
Graph of the Day: Annual RMB Export Growth vs. RMB-USD Appreciation
This graph comes via the Council on Foreign Relations (hat tip James Fallows). The Chinese were implementing a gradual revaluation before the credit crisis. They stopped revaluing their currency versus the USD in 2008. And immediately two things happened. Household spending growth plummeted Exports surged The question for everyone is whether this is currency
An Unusual But Interesting Argument Which May Help To Understand Why QE2 Is Now Almost Inevitable
by Edward Hugh For reasons which aren’t worth going into now, I’m reading through a recent report by Deutsche Bank Global Markets Research entitled “From The Golden To The Grey Age” this afternoon. The report (all 100 pages of it, many thanks to researchers Jim Reid and Nick Burns who produced the thing) looks at
The US dollar decline is symptomatic of China’s investment bubble
There hasn’t actually been any "QE". You’ve simply had the promise of QE2 and some attempts within the market to front run the actual implementation of the policy. In reality, QE per se has nothing to do with the dollar move, which has two components. One is traders and money managers and trend followers piling
Scotia Bank: Canadian dollar strength “driven by U.S. efforts to export its years of profligacy”
I think it’s fair to characterize the situation with the Fed’s Quantitative Easing Open Mouth Operations as somewhat out of control. Fears of a disorderly decline in the US dollar are certainly increasing. If anything, the US dollar is oversold right now as Marc Chandler pointed out this morning. Moreover, I think QE is a