Post Tagged with: "protectionism"
Tim Geithner on Charlie Rose in his own words regarding China
US Treasury Secretary Tim Geithner was on Charlie Rose the day before yesterday explaining his position on alleged "currency manipulation" by the Chinese. This quote stands out as defining his position: What’s happening is, as China holds its currency down, their currencies are moving up and they’re having to work very hard to make sure
Xin Fa’an: A modest proposal to resolve the coming trade war
Earlier this week I had a debate on TV with a local economist on the subject of trade relations. We had the same debate about six and twelve months ago and in each case while I argued that the trade problems were almost intractable and trade relations would inexorably deteriorate, he both times acknowledged that
Krugman: China is ‘Really the Bad Guy’ in Currency War
The U.S. Senate will pass legislation geared to pressuring China to revalue its currency and the US is set to label China a currency manipulator. The view in Washington ahead of the mid-terms is that China is "the bad guy" as Paul Krugman explains in the video below. Here is a synopsis of the Krugman
No White Flag in this Currency War
by Annaly Capital Management In recent weeks, the Plaza Accord has been receiving a lot of attention, particularly after the IMF’s annual meeting in Washington concluded without making any progress on currency issues. If you recall, the Plaza Accord is the popular name given to an agreement struck in September 1985 by the world’s finance
The Folly of Competitive Currency Devaluations
By David Galland During our just-concluded Casey’s Gold & Resource Summit, Doug Casey spoke out about the folly that central bankers commit when they set out to deliberately weaken their currencies in the hope of gaining an advantage for their export goods and, therefore, for their economy. I dropped Doug a note asking him to
My thoughts on the ‘currency war’
I spoke to the Russian TV broadcaster Russia Today and the popular Indian website DNA India late last week about the escalating rhetoric surrounding the forex market. The video from RT is not available yet but the link to the DNA post is right below. Let me summarize my view. I believe the developed economies
Currency Wars: A View from the Trenches
From the Friday BBH FX Special. Also see Win Thin’s Thursday comments on this here. Recent weeks have seen much talk about "currency wars". This talk suggests that many countries are seeking the devaluation of their currencies in order to promote their exports, which in turn forces other countries to respond with similar efforts. It
EM Real Effective Exchange Rates Hardly the Stuff of Competitive Devaluation
by Win Thin With all this talk about currency wars, several points need to be made. The most important one that we have been stressing is that EM currencies are stronger now than they were a year ago, hardly the stuff of competitive devaluation. Yes, many policy-makers are trying to limit currency strength but moves
Currency Wars To Be Feared—Not Celebrated
by Comstock Partners On Tuesday the market soared on the grounds that global efforts to engage in another round of monetary ease and devalue currencies would boost economies around the world. We think that the market’s initial reaction is a wrong-footed move that will soon be reversed upon further reflection. What we are actually facing
Stiglitz on the Fed: “The flood of liquidity is going abroad and causing problems all over the world”
(video embedded below) See Stiglitz’s written remarks here: Source: Joseph Stiglitz – The Federal Reserve’s Relevance Test – Project Syndicate
Chinese credit expansion has no place to put its money
In regards to Ed’s last post on China and trade, the position of Michael Pettis is much closer to mine (and Martin Wolf’s, which he expressed yesterday in the FT). The quote of Pettis that Ed cites does not invalidate my position at all: So after years of dragging its feet, postponing a rebalancing, and
Goldman forecasts US dollar set for sharp decline: $1.85 to sterling, $1.55 to the euro
As a result of the Federal Reserve’s next round of quantitative easing, Goldman Sachs is predicting a sharp slump in the US dollar’s value against other major currencies. In particular, the dollar is expected to weaken to $1.79 against the British pound over the next six months, $1.85 over the next year. The dollar will