loosecannon
Senior Member
- May 7, 2007
- 4,888
- 269
- 48
We have been in a simmering debasement marathon for decades, in a slowly boiling debasement relay race for a year, and now comes the sprint toward the finish.
This will make tariffs look like what sissies did to prolong the Great Depression.
Analysis: Japan yen tactic muddles bid to drive yuan up | Reuters
Japan yen tactic muddles bid to drive yuan up
This could be a real shit hits fan event or it could be quickly addressed and resolved.
I am definitely betting on the former cuz China is not gonna depeg the yuan. And everybody else gets it.
This will make tariffs look like what sissies did to prolong the Great Depression.
Analysis: Japan yen tactic muddles bid to drive yuan up | Reuters
Japan yen tactic muddles bid to drive yuan up
Japan's decision to single-handedly intervene in currency markets to drive down its currency's value complicates a U.S. and European bid to persuade export-powerhouse China to let its yuan appreciate.
Amid growing global pressure for Beijing to let its yuan rise in value to help rebalance uneven global trade, analysts warn that Japan's unilateral action risks spurring an era of beggar-thy-neighbor policies as countries try to devalue their way to prosperity.
Already on Wednesday, Colombia's central bank said it was starting to buy at least $20 million daily to slow the rise in its peso currency and Brazilian Finance Minister Guido Mantega said he was "watching the game" and wouldn't stand by if others weakened their currencies at Brazil's exporting expense.
In Thailand, business leaders are urging policymakers to keep the baht's value from rising excessively so that its industrial sector doesn't suffer, and analysts see a risk that Thailand and other Asian nations may follow Japan's path.
Tokyo's solo intervention in currency markets was not unexpected. The yen had hit a 15-year high that was a threat to Japan's recovery, and officials in Tokyo had been threatening to intervene for weeks.
U.S. lawmakers, embarking on the first of two days of hearings into China's currency policies, let their anger show on Wednesday at the two Asian trade giants while venting frustration at the difficulty in shrinking trade imbalances.
"China is not the only country with a predatory exchange rate policy," said U.S. House of Representatives' Ways and Means Committee Chairman Sander Levin, describing Japan's intervention as "a deeply disturbing development."
"What's happening is that China's actions have affected Japan, and now Japan's actions affect us," he said.
This could be a real shit hits fan event or it could be quickly addressed and resolved.
I am definitely betting on the former cuz China is not gonna depeg the yuan. And everybody else gets it.