Monday, September 20, 2010

Quotes Albert Edwards, Bill Buckler, Alan Greenspan,William Buiter, Mr Mantega ( Brazil’s Finance Minister ), Ben Davies & Ambrose Evans-Pritchard

Cannot believe that i´m quoting Greenspan without making the usual jokes about his "wisdom"......... ;-)

Fast unheimlich das man mal ohne Häme Greenspan zitieren kann...... ;-)

Albert Edwards via ZH
Central bankers, by pursuing policies that allowed the middle classes to borrow against rising asset prices, kept them consuming despite the stagnation of their incomes and hence disguised the effect of government policies that allowed the rich to acquire virtually all of the gains in GDP growth.

And in the process of “robbing” the middle classes and now still attempting to keep asset prices artificially high, they are also robbing our children of the ability to buy a house at an affordable price. Yet central bankers still see QE as key to maintaining the illusion of prosperity and stoking consumer spending
Bill Buckler via ZH
"Ninety-seven percent of all existing Treasury debt has been created since August 15, 1971! Ninety-three percent of it has been created since Mr Volcker “saved” the paper Dollar in late 1979! Please note that the gain in Treasuries and the loss in the US Dollar almost exactly cancel out.

Please note also that even the biggest gain in these paper markets fades into insignificance against Gold’s rise."And here is the answer all the "gold bugs" have been waiting for: "The paper money “price” of Gold will last as long as the attempt to make paper money “work” lasts. In the end, Gold will no longer have a “price” because it has reverted to its role as MONEY. Whenever and wherever that happens, that nation can return to the production of wealth - rather than “money”."
Alan Greenspan via The Reformed Broker
Mr. Greenspan replied that he’d thought a lot about gold prices over the years and decided the supply and demand explanations treating gold like other commodities “simply don’t pan out,” as Mr. Malpass characterized Mr. Greenspan. “He’d concluded that gold is simply different,” Mr. Malpass wrote. At one point Mr. Greenspan spoke of how, during World War II, the Allies going into North Africa found gold was insisted on in the payment of bribes. Said the former Fed chairman: “If all currencies are moving up or down together, the question is: relative to what? Gold is the canary in the coal mine. It signals problems with respect to currency markets. Central banks should pay attention to it.”
William Buiter via FT Alphaville
…even the fiscally best-positioned G7 countries, Germany and Canada, face major fiscal challenges. Germany would not be able to join the Euro Area today if it were not a member already, because it fails to meet the deficit criterion (no more than 3% of GDP) and the debt criterion (no more than 60% of GDP) – in the case of the public debt to GDP ratio, by a significant and growing margin. Indeed, the aggregate Euro Area fails both criteria by wide margins, and of the 16 individual member states, only Luxembourg and Finland qualify on both criteria…
With QE 2.0 now finally on the table & spreading "competitive devaluations" ( timing wasn´t bad... see Update)around the globe i think you should give the Ludwig von Mises reference via John Hussman a second look....

Da ja nun auch endlich offiziell QE 2.0 angekündigt worden ist und weltweit ein finaler Abwertungswettlauf ( Timing hätte schlechter sein können...siehe Update )in Sachen Währungen um sich greift ( und dabei rasant an Fahrt gewinnt ) kann es nicht schaden noch einmal einen Blick auf das Ludwig von Mises Zitat via John Hussman zu werfen....

UPDATE:

Ambrose Evans-Pritchard Telegraph
States accounting for two-thirds of the global economy are either holding down their exchange rates by direct intervention or steering currencies lower in an attempt to shift problems on to somebody else, each with their own plausible justification. Nothing like this has been seen since the 1930s.
Brazil’s finance minister Mr Mantega via FT Alphaville
Mr Mantega, Brazil’s finance minister, declared earlier this month that the Brazilian real was caught up in ‘a silent war’ in currency markets, as nations compete to speed up their economic recoveries by putting their exporters at an advantage…
Ben Davies Ft Alphaville
Within a single week 25 nations have deliberately slashed the values of their currencies. Nothing quite comparable with this has ever happened before in the history of the world. This world monetary earthquake will carry many lessons.
Got GOLD ? ;-)

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6 Comments:

Blogger jmf said...

Yields at 5-Month Low as Bank Prints Pesos: Argentina Credit Bloomberg

Central bank President Mercedes Marco del Pont, who was nominated yesterday to continue at the bank after her term was set to expire, is spurring money supply growth by selling pesos for dollars to weaken the currency and shore up exports.

4:36 AM  
Blogger jmf said...

Deutsche Bank: Don't Knock Japan, Actually ALL Of Asia Is Intervening In Currency Markets
BI


And as for Japan giving an excuse to China to continue its intervention, Japan’s intervention is far more likely to have been a reflection of their frustration with their neighbours’ (not just China) currency policies. In an export-dependent economy but with a currency that is arguably overvalued, it must be frustrating for Japanese policymakers to see other Asian economics getting away with such persistent intervention to weaken their currencies

4:38 AM  
Blogger jmf said...

A Return to Beggar Thy Neighbor? WSJ

Beggar-thy-neighbor currency devaluations proved ruinous for the global economy in the 1930s. Is the world setting off down the same slippery slope again?

Japan's decision to intervene in the currency market to drive down the value of the yen blew a hole in the developed world's united effort to persuade China and other Asian countries to stop artificially holding down their currencies. Meanwhile, speculation that the U.S. and U.K. could soon resume quantitative easing has hit the value of the dollar and sterling. The resulting tensions are bad news for the euro zone but a gift to gold bugs.

As in the 1930s, competitive devaluations, whether by fair means or foul, are likely to increase international tensions and risk protectionist responses. Meanwhile, they will do nothing to address the global imbalances that led to the crisis or tackle the chief problem facing the advanced economies today: lack of domestic demand in many countries.

Longer term, the biggest gainer is likely to be gold, already pushed to nearly $1,300 an ounce this week, the traditional refuge of those unwilling to put their faith in politicians.

10:40 PM  
Blogger jmf said...

Competitive Currency Devaluation: The Board Game Kedrosky

4:07 AM  
Blogger jmf said...

Read the two headlines & links and you should know ehy i call the "central banksters"....

Gold Spikes After BOE's Posen Demands More QE, Wants To Buy Corporate Debt

Bank of England Tells Old People to Eat Their Seed Corn, Um, Principal

6:49 AM  
Blogger jmf said...

Chart of the Day: Rolling Bear Market in Various Currencies Since 2007 Rosenberg via CW

His interpretation of the chart is that it demonstrates a "series of rolling currency depreciations" in a beggar thy neighbour world of weak aggregate demand. The competitive currency devaluation theme recently caught fire because of rather pointed remarks by Brazilian finance minister Mantega.

9:40 PM  

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