Keyword: devaluation

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  • KYLE BASS: 'We Are Facing The Largest Macro Imbalance In Global History'

    07/01/2016 1:42:13 PM PDT · by blam · 28 replies
    Businessinsider.com ^ | July 1, 2016 | Rachel Levy
    Rachael LevyJuly 1, 2016 "We are facing the largest macro imbalance in global history." That's according to Kyle Bass, founder of hedge fund Hayman Capital Management. Investors better prepare for a Chinese crisis that will mimic what happened in the US mortgage crisis, Bass said in a Friday interview with Real Vision Television. "When I look at what's happening now in China, the amplitude of what's happening is two, three, or four times what happened in the US," he said. Here are Bass' main points: •The Chinese are going to have to accept a devaluation of the yuan. • When...
  • Malawi's new president sells off presidential jet and 60 Mercedes

    06/02/2012 5:47:37 PM PDT · by bruinbirdman · 17 replies
    The Telegraph ^ | 6/1/2012 | Aislinn Laing, Johannesburg and Damien McElroy
    Joyce Banda, Malawi's new president, has announced the presidential jet and fleet of 60 Mercedes limousines would be sold in a move applauded by a British cabinet minister as an example to other African leaders. Mrs Banda said she was happy to "offload" the presidential perks, adding: "I can well use private airlines. I am already used to hitchhiking." It means that the 62-year-old head of state – the second woman to hold the position in Africa – will fly to the Queen's Jubilee celebrations in London this weekend with British Airways. Andrew Mitchell, the UK International Development Secretary who...
  • Dollar Dive On Fed Boosts Outlook For Exports, Corporate Profits [DEVALUTATION + DEFLATION]

    03/18/2016 3:25:19 AM PDT · by expat_panama · 10 replies
    Investors Business Daily ^ | March 18, 2016 | JED GRAHAM
    The dollar fell sharply for a second straight day to five-month lows Thursday on the Federal Reserve’s less-ambitious rate-hike plans. That in turn boded well for corporate earnings, lifting the S&P 500 to its highest level of the year. The Fed signaled Wednesday that it wants to make sure the economy builds up some momentum before it resumes normalizing interest rates. That was a much more inviting message than in December... ...a strong dollar, weak earnings, tepid growth and a plunge in commodity prices that raised fears of emerging market defaults. The central bank indicated that it now sees only...
  • Saudi Devaluation Odds Highest In 20 Years, Kingdom Now More Likely To Default Than Portugal

    01/07/2016 9:23:58 AM PST · by SeekAndFind · 12 replies
    Zero Hedge ^ | 01/07/2016
    On Monday, we brought you "Saudi Default, Devaluation Odds Spike As Mid-East Careens Into Chaos," in which we outlined the jump in riyal forwards and widening of CDS spreads that Riyadh witnessed in the aftermath of the kingdom's move to cut diplomatic ties with Iran.In short: the market is getting worried that Riyadh is about to careen into crisis. In the face of slumping crude, the Saudis are staring down double digit budget deficits and the prospect of having to once again tap debt markets in order to offset the SAMA burn and keep the kingdom from having to...
  • China Marks the Yuan Lower a Third Time

    08/12/2015 6:54:11 PM PDT · by TigerLikesRooster · 13 replies
    WSJ ^ | Aug. 12, 2015 | Ewen Chew
    China Marks the Yuan Lower a Third Time USD/CNY closed Wednesday at 6.3870 and its fixing was at 6.3306 By Ewen Chew Updated Aug. 12, 2015 9:26 p.m. ET 0122 GMT [Dow Jones] China’s central bank has adjusted the daily yuan benchmark weaker for a third day, moving the USD/CNY fixing to 6.4010 from 6.3306 on Wednesday. The move sent proxy currency pairs USD/KRW and USD/SGD higher, but not by much yet. Traders are awaiting the USD/CNY spot market opening in a few minutes to cement conviction that Asian currencies are going to fall again.
  • On This Day in 1933

    06/16/2013 5:40:22 PM PDT · by george76 · 14 replies
    Ludwig von Mises Institute ^ | June 13th, 2013 | Christopher Westley
    You were considered a hoarder and a slacker if you still resisted turning over your gold to the government. ... most of those who voted for FDR never expected him to confiscate private holdings of gold coins, bullion, and certificates. Roosevelt called the measure a temporary one (it wasn’t), and he followed it up by invalidating gold clauses in private contracts that obligated payment in gold dollars, which had the effect of devaluing the assets of bond and contract holders. ... By January 1934, Roosevelt increased the dollar price of gold from $20.67 to $35, thus devaluing the dollar by...
  • Why the price of oil may be about to tank

    03/06/2014 4:21:03 PM PST · by rickmichaels · 63 replies
    Maclean's ^ | March 5, 2014 | March 5, 2014
    It’s easy to get lost in the incremental gyrations of oil prices. “Oil rises on colder weather,” screams a headline one day, only to be followed the next by “Crude edges down on inventory report.” When not being driven by “fears over the Middle East,” crude is being hammered by “weak Chinese data.” You’d almost think energy analysts have a roulette wheel of explanations they spin each time prices move a notch: “Well, what will it be today? Oh ho! Emerging market turmoil it is.” Which is why it’s so refreshing—and to be frank, scary—to talk with Bob Hoye, the...
  • The Fed's 'hidden agenda' behind money-printing [Weimar Republic: Germany, 1920s...]

    09/25/2013 11:50:30 AM PDT · by SoFloFreeper · 15 replies
    CNBC ^ | 9/25/13 | Peter J. Tanous
    The markets were surprised when the Federal Reserve did not announce a tapering of the quantitative easing bond buying program at its September meeting. Indeed, its signal to the market that it was keeping interest rates low was welcome, but there may be a hidden agenda. Since it began in late 2008, QE has spurred a vigorous debate about its merits, both positive and negative. On the positive side, the easy money and low interest rates resulting from quantitative easing have been a shot in the arm to the economy, fueling the stock market and helping the housing recovery. On...
  • In Race to Bottom, US Dollar Falls Behind

    07/10/2013 2:38:02 PM PDT · by ckilmer · 11 replies
    yahoo ^ | 7/10/2013 | Jeff Cox
    If there is a global currency devaluation war, the U.S. is losing.
  • Gold And Silver - The End Is Near; Just Not In Sight

    06/22/2013 9:50:04 PM PDT · by blam · 29 replies
    The Market Oracle ^ | 6-22-2013 | Michael Noonan
    Gold And Silver - The End Is Near; Just Not In Sight Commodities / Gold and Silver 2013 June 22, 2013 - 04:00 PM GMT By: Michael Noonan Whatever expectation[s] you may have, expect the unexpected and unlike what you may expect. So far, that has been playing out quite nicely, and one of our expectations is that it will continue to unfold in the same manner, and to the ongoing surprise of most. "Gold will be at/above $2,000 by the end of the year." "Gold will reach $3,000 [$5,000, $10,000, etc] and silver $100, [$250, $500, etc]" "The central...
  • New Bank of England chief Carney will devalue sterling, PIMCO warns

    06/01/2013 4:47:53 AM PDT · by Olog-hai · 4 replies
    Daily Telegraph (UK) ^ | 1:18PM BST 29 May 2013 | Philip Aldrick
    Mark Carney will try to devalue the pound by as much as 15 percent after he takes over as Bank of England Governor in July in a last ditch attempt to cement the UK recovery, PIMCO, the world’s largest bond house, has warned. Growth in Britain is going to remain “challenged” for the next three to five years as the Government continues to shrink the public sector and cut the budget deficit. As banks and households also grapple with their excessive debts, “that leaves one policy tool outstanding, which is basically the currency”, PIMCO managing director and sterling bond head...
  • Cypress To The Hill

    03/18/2013 9:28:08 AM PDT · by Shout Bits · 16 replies
    Shout Bits Blog ^ | 3/18/13 | Shout Bits
    Last Week, the EU and Cypress imagined another way to fund government bailouts and spending – wealth confiscation. Under the still changing plan, bank savings would be confiscated at a rate of 3 to 15%. The reaction, which only a EU bureaucrat could not foresee, has been a run on the banks; only an idiot would keep his money in a bank when confiscation was on the table. The EU showed its communist side with the plan; to the EU, there is no distinction between private and public wealth, and personal savings are not particularly sacred. Indeed, many European nations...
  • Devaluation Nations – Part Deux: Venezuela, Japan, Argentina, USA and Green Lettuce

    02/13/2013 11:47:44 AM PST · by whitedog57 · 5 replies
    Confounded Interest ^ | 02/13/2013 | Anthony B. Sanders
    There is a Green Lettuce revolt in Venezuela. Green lettuce is a slang term for the US Dollar and is discouraged by the Venezuela government. Feb. 13 (Bloomberg) — Venezuela’s bolivar plunged to a record low in unregulated trading after last week’s devaluation of the official rate failed to increase the supply of dollars. The currency weakened 10 percent to 22.36 bolivars per dollar today, according to Lechugaverde.com, a website that tracks the country’s currency in the black market. The bolivar has declined 18 percent in unregulated trading since President Hugo Chavez, who is recovering from cancer surgery in Cuba,...
  • The Venezuelan Train Crash

    02/12/2013 1:41:06 PM PST · by IBD editorial writer · 8 replies
    Investor's Business Daily ^ | 11 Feb 2012 | Editorial
    Economics: Venezuela has devalued its currency, joining Iran, Argentina and others whose wars on math brought the same result. Some call this a "restorative." It's not. It's what happens when big government hits a wall. Venezuela's monster 47% devaluation from 4.3 to 6.3 bolivars to the dollar, reportedly ordered by President Hugo Chavez from his hospital bed in Cuba, marks the reckoning for his regime's big-spending ways in Venezuela's low-growth economy. It was about as predictable as a crash from a runaway train, given his mad-lunatic war on economics — his lethal combination of welfare spending, destruction of the private...
  • Devaluation Nations: Argentina and Venezuela Suffer Ravages of Inflation

    02/09/2013 10:20:42 AM PST · by whitedog57 · 4 replies
    Confounded Interest ^ | 02/09/2013 | Anthony B. Sanders
    All eyes are on the Federal Reserve and their seemingly endless quantitative easing. For the most part, the massive liquidity surge has not manifested itself into South American-like inflation since our banks have most of the excess reserves still trapped in the banking system. Except for student loans, of course. This has resulted in a crashing of the M1 Money Multiplier and the M2 Money Velocity ratios signifying that the enormous increase in money supply in recent years isn’t translating into economic growth or lending. Depending on your measurement of inflation, the US has been spared South American inflation. Or...
  • Venezuela Devalues Its Currency

    02/08/2013 7:53:58 PM PST · by blam · 9 replies
    Venezuela Devalues Its Currency Matthew BoeslerFebruary 8, 2013, 3:43 PMVenezuela just undertook a massive currency devaluation, re-pegging the bolivar to a value of 6.3 per U.S. dollar from its previous official exchange rate of 4.3 bolivars per dollar. The government also announced that it would shutter the Venezuelan currency exchange system known as SITME. Given the currency devaluation underway in other economies around the world right now – perhaps most notably in Japan – a few are calling this Venezuela's foray into the global "currency war" between countries trying to devalue their currencies in order to increase export competitiveness. However,...
  • Venezuela announces currency devaluation

    02/08/2013 3:33:15 PM PST · by dynachrome · 5 replies
    AP via yahooooo ^ | 2-8-13 | FABIOLA SANCHEZ
    It was the first devaluation to be announced by Chavez's government since 2010, and it brought down the official value of the bolivar by 46.5 percent against the dollar. By boosting the bolivar value of Venezuela's dollar-denominated oil sales, the change is expected to help alleviate a difficult budget outlook for the government, which has turned increasingly to borrowing to meet its spending obligations.
  • Protest breaks out in Iran as currency crumbles under sanctions (Watch video)

    10/03/2012 5:25:03 PM PDT · by SeekAndFind · 6 replies
    Hotair ^ | 10/03/2012 | AllahPundit
    Via The Lede and Business Insider, which has an eye-popping graph showing what’s happening to the rial right now. We've all got debate fee-vah tonight but I want to put this on your radar screen in case things start to spiral in Tehran. The point of nuclear sanctions was to put Iran's economy in a vise so that public discontent would force the regime to either back down on uranium enrichment or risk destabilization from within. Here's a destabilizing tremor now: Clashes and at least one spontaneous protest erupted in Tehran on Wednesday over the plunging value of Iran’s currency,...
  • Argentine official denies devaluation planned

    06/01/2012 3:50:00 PM PDT · by dynachrome · 16 replies
    associated press ^ | 6-1-12 | MICHAEL WARREN
    BUENOS AIRES, Argentina (AP) -- A top Argentine official denied on Friday that the government plans to devalue the peso amid rumors that drastic official actions are looming. "We are not going to take any explosive measures," Deputy Economy Minister Axel Kicillof said at a news conference. Argentina's economy is under pressure from rising inflation and slowing trade, and people have been increasingly trading their pesos for U.S. dollars to shelter their earnings.
  • Under Obama, Price of Gas Has Jumped 83 Percent, Ground Beef 24 Percent, Bacon 22 Percent

    01/24/2012 4:25:59 PM PST · by OPS4 · 41 replies
    CNS news ^ | 1/24/12 | Christopher Goins
    So far, during the presidency of Barack Obama, the price of a gallon of gasoline has jumped 83 percent, according to data from the Bureau of Labor Statistics. (AP Photo) During the same period, the price of ground beef has gone up 24 percent and price of bacon has gone up 22 percent. When Obama entered the White House in January 2009, the city average price for one gallon of regular unleaded gasoline was $1.79, according to the BLS. (The figures are in nominal dollars: not adjusted for inflation.) Five months later in June, unleaded gasoline was $2.26 per gallon,...