G20 set to dilute big powers' demands on currencies

Comments (14)
oavery wrote:

Obama has no problem with debauching the US currency, with producing stagnation and ultimately stagflation, with wiping out the savings of the middle class. He deeply believes that until he destroys capitalism as a force in American life the socialist utopia he has wanted since his SDS days in college will not come to pass. He is perfectly happy to sacrifice the well being of his nation in the service of his ultra-left ideology. In true Alinsky fashion he uses moderate words but his every action – massive trillion dollar deficits, hyper-regulation, imposition of unsustainable expenses like Obamacare, crushing of an obviously economically beneficial cross country oil pipeline, loading taxes on the backs of small businessmen and in doing so extinguishing job creation, producing the lowest percent of the population employed since 1948, wanting to raise taxes when federal revenues are already at their highest level yet – all make sense only in the context of an underlying desire to fulfill the dreams of his Father by destroying the US as a bulwark of capitalism and the west.

Feb 14, 2013 8:54pm EST  --  Report as abuse
daveca wrote:

FALSE REPORTING ABOUT JAPAN

NHK World, a source that actually KNOWS something about Japan, stated the value of the Yen was too high and that was causing problems for Japanese manufacturers, so they were going to deliberately devalue the Yen by buying Indian RMB.

Notice how this thing about Japan is taken out of context to attempt to support hysteria about a currency war.

Feb 14, 2013 9:39pm EST  --  Report as abuse
econo-novice wrote:

It would be nice to give the table which shows the movement of all the currencies of G20 countries relative to the US dollar after the Nixon Era. The short time movement of any currency is misleading.

Feb 14, 2013 10:13pm EST  --  Report as abuse
Pterosaur wrote:

@deveca,

NHK World is the Japanese media, not yet controlled by the US. Does it ring a bell?

Feb 14, 2013 10:43pm EST  --  Report as abuse
Gandaffy wrote:

The USA started the currency war by devaluing the dollar in what was called Quantitative Easing or QE.

How then is Japan the bad guy for wanting to end decades of deflation by doing the EXACT same thing?

Forget all of the rhetoric on the currency wars and the G7/G20 circus of BS. The world is DEEP into this currency war already and the currency printing(devaluing) has just begun.

There is nothing that any government can do to stop the financial Tsunami that is about to destroy(steal) the wealth of the 99% and deliver the entire world to the global shadow financial dictatorship on a silver(and gold) platter…

They can’t/won’t stop it because it is their baby and they are the ones who will prosper from the devaluation/devastation.

Feb 15, 2013 12:31am EST  --  Report as abuse
WJL wrote:

The smart thing to do is to increase your use of the yuan in your trade transactions. It will not be pretty when the US dollar and Treasuries go off the cliff which is possibly very soon. You will need alternative financial arrangements to continue trading.

Feb 15, 2013 3:48am EST  --  Report as abuse
Tiu wrote:

When it comes to money the writing is on the wall of the lead photo.

Feb 15, 2013 5:17am EST  --  Report as abuse
petejury wrote:

In response to oavery, the Orlando Bisegna Index actually shows the US to be pulling itself out of the economic crisis over the past few months. The index measures the intensity of the crisis in all the G20 countries and other Euro countries.

Feb 15, 2013 6:44am EST  --  Report as abuse
west129 wrote:

This article is over my head but scares me to say the least. Are the big ones using all kind of gimmickries to prop up a crumbling house of cards? Let it collapse. The lesson I take away from it is to follow their example. Therefore, I will borrow and spend as much as possible. One would be a fool to save phantom values. Money’s value is realized only at the time it is spent. And the time to sped is now because nobody knows what it is worth tomorrow!

Feb 15, 2013 9:51am EST  --  Report as abuse
GLK wrote:

Internet search for Ron Paul’s 2006 speech, “The End of Dollar Hegemony.”

Feb 15, 2013 11:40am EST  --  Report as abuse
exigible wrote:

@daveca
What do you think a currency war is? It is manipulating your own currency usually by devaluing it in order to boost manufacturing exports, at the loss of other exporting nations.

This is exactly what china has done (coupled with cheap labor) for decades to keep hold on the majority of U.S. manufacturing.

This could foil Obama’s plan of U.S. robotic manufacturing. Japan can do robot manufacturing cheaper and with no labor also, especially if they win a currency war. It won’t affect actual people since there are no jobs at stake (except for those poor out-of-work robots). This is just two dogs fighting for tax receipts.
Obama’s self congratulation on manufacturing is particularly lame because their are no jobs. The only one this helps is government bean counters looking for revenue to pay everyone that’s on the dole.

Feb 15, 2013 2:02pm EST  --  Report as abuse
Shootist wrote:

Market Pulse: A strong euro is better than a dead euro (4:59)

I’m uncertain that this statement is a truism.

Feb 15, 2013 5:30pm EST  --  Report as abuse
oavery wrote:

In response to Petejury a few pertinent points:
1. Economies turn on large scale fundamental factors. Increasing the ratio of debt to GNP by 12%, 9%, 10% and 11% in 4 years is unsustainable. While unemployment numbers are effectively manipulated by not counting people unemployed for >1 year, the true rate of unemployment is easily estimated by measuring total employment in the economy – which is at the lowest level since 1948. The formation of companies via IPOs is at less than half the rate of 2005 and 2006 which themselves were not banner years. The tax burden has just increased for ALL employed Americans and the burden on those who invest has increased markedly. On fundamental factor after fundamental factor the US economy is basically stagnant to declining while we pile up some factors (like an unbelievable debt load from a President who has deficit spent in 4 years more money than EVERY President from George Washington to the end of the first term of George Bush) – a level of debt that will eventually sink the boat.
2. China used to purchase as much as 67% of our bonds and has basically dropped out of buying out bonds despite continuing to run surpluses. Who buys the bonds? The US treasury prints money to buy our bonds. Other countries cannot do this at all because they are not reserve currencies but we are running out that string as other countries become aware of the fact that Obama’s strategy is to pay for his endless spending and buying of constituency votes by debauching the currency – a three-fer for him – it serves the purposes of buying more votes for him now, moving more people into dependency on government and destroying the wealth of the middle class to make recovery in the future impossible.
3. The changes in the Orlando Bisegna Index just say that some other countries like Greece are even further along the curve to disaster than the US – relative changes do not say we are getting better just that they are getting worse faster. I do not find this reassuring. Neither should anybody else.
4. Quantitative Easing is all about destroying the wealth of the middle class by laying the substrate for the hidden tax of inflation. If you are a leftist who sees the middle class bourgeois as an obstacle (a Chavez or Castro or Mugabe or Obama or Peronist mentality) then this is fine. However if you like the idea of living in a prosperous successful country you think it is a bad idea. It is instructive to note that the countries that have followed Obama’s policies ALWAYS end up in bad shape – usually accompanied by a war launched by the government anxious to distract people from the disaster of their policies.

Feb 15, 2013 6:38pm EST  --  Report as abuse
oavery wrote:

In response to Petejury a few pertinent points:
1. Economies turn on large scale fundamental factors. Increasing the ratio of debt to GNP by 12%, 9%, 10% and 11% in 4 years is unsustainable. While unemployment numbers are effectively manipulated by not counting people unemployed for >1 year, the true rate of unemployment is easily estimated by measuring total employment in the economy – which is at the lowest level since 1948. The formation of companies via IPOs is at less than half the rate of 2005 and 2006 which themselves were not banner years. The tax burden has just increased for ALL employed Americans and the burden on those who invest has increased markedly. On fundamental factor after fundamental factor the US economy is basically stagnant to declining while we pile up some factors (like an unbelievable debt load from a President who has deficit spent in 4 years more money than EVERY President from George Washington to the end of the first term of George Bush) – a level of debt that will eventually sink the boat.
2. China used to purchase as much as 67% of our bonds and has basically dropped out of buying out bonds despite continuing to run surpluses. Who buys the bonds? The US treasury prints money to buy our bonds. Other countries cannot do this at all because they are not reserve currencies but we are running out that string as other countries become aware of the fact that Obama’s strategy is to pay for his endless spending and buying of constituency votes by debauching the currency – a three-fer for him – it serves the purposes of buying more votes for him now, moving more people into dependency on government and destroying the wealth of the middle class to make recovery in the future impossible.
3. The changes in the Orlando Bisegna Index just say that some other countries like Greece are even further along the curve to disaster than the US – relative changes do not say we are getting better just that they are getting worse faster. I do not find this reassuring. Neither should anybody else.
4. Quantitative Easing is all about destroying the wealth of the middle class by laying the substrate for the hidden tax of inflation. If you are a leftist who sees the middle class bourgeois as an obstacle (a Chavez or Castro or Mugabe or Obama or Peronist mentality) then this is fine. However if you like the idea of living in a prosperous successful country you think it is a bad idea. It is instructive to note that the countries that have followed Obama’s policies ALWAYS end up in bad shape – usually accompanied by a war launched by the government anxious to distract people from the disaster of their policies.

Feb 15, 2013 6:38pm EST  --  Report as abuse
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