Sterling to get abused even more?

IzzyFreedman

As the GFC worsens the central planners are increasingly turning to currency abuse in a last ditch attempt to postpone the inevitable.

Thursday 4 April is a big day in the currency wars.

The heads of three of the world’s most important central banks are squaring up to see who can wreak most damage on the currencies in their care.

The euro, the yen, and sterling are all at the mercy of the latest monetary policy decisions from Europe, Japan and the UK.

So who will win?

At the moment Japan is winning the race to the bottom and the USA is losing even though they are creating $85 billion every month.

michaels

So is currency depreciation the only lever by which QE is transferred to the real economy?

As the OP suggests, if this is the only mechanism then it is a zero sum game.

Dreadzone

Normally a country would be punished through the bond markets, however with the Bank of England being such a big player in the market for UK Gilts its only logical that the UK's poor performance & prospects are reflected elsewhere.

Pity that the devaluing sterling causes high inflation!

dryhat

Sterling is dropping like a stone against bitcoin...


I bought 20btc about 3 weeks ago at £27 each and the price is now rapidly approaching £100 each.


Better returns than property.

I just wish I bought more.

IzzyFreedman

dryhat wrote: »

Sterling is dropping like a stone against bitcoin...


I bought 20btc about 3 weeks ago at £27 each and the price is now rapidly approaching £100 each.


Better returns than property.

I just wish I bought more.

Bitcoin is just another way to expand to the worlds currency supply.

purch

IzzyFreedman wrote: »

As the GFC worsens the central planners are increasingly turning to currency abuse in a last ditch attempt to postpone the inevitable.

Thursday 4 April is a big day in the currency wars.

The heads of three of the world’s most important central banks are squaring up to see who can wreak most damage on the currencies in their care.

The euro, the yen, and sterling are all at the mercy of the latest monetary policy decisions from Europe, Japan and the UK.

So who will win?

At the moment Japan is winning the race to the bottom and the USA is losing even though they are creating $85 billion every month.

This reads like a cut and paste jobbie from the internet.

Be a man.

Cite your source.

IzzyFreedman

You will dismiss it as inacurate because its Moneyweek

http://www.moneyweek.com/investments/currencies/a-big-day-in-the-currency-wars-63000

purch

What are these currencies "racing to the bottom" of by the way.

I always thought currency value was relative. Maybe it's all changed.

Graham_Devon

IzzyFreedman wrote: »

As the GFC worsens the central planners are increasingly turning to currency abuse in a last ditch attempt to postpone the inevitable.

Thursday 4 April is a big day in the currency wars.

The heads of three of the world’s most important central banks are squaring up to see who can wreak most damage on the currencies in their care.

The euro, the yen, and sterling are all at the mercy of the latest monetary policy decisions from Europe, Japan and the UK.

So who will win?

At the moment Japan is winning the race to the bottom and the USA is losing even though they are creating $85 billion every month.

Well today it looks like Japan have just left us in the dust!

purch

Graham_Devon wrote: »

Well today it looks like Japan have just left us in the dust!

It may be a little early to think that.

What is more worrying is, what happens if this doesn't work ?

Nothing else they have tried over the last 20 years has had much of an impact :eek:

Generali

purch wrote: »

It may be a little early to think that.

What is more worrying is, what happens if this doesn't work ?

Nothing else they have tried over the last 20 years has had much of an impact :eek:

You can't fight demographics with monetary or fiscal policy as my old mum used to say.

Europe is going to discover that before too long. The UK would be wise to keep the doors open until someone finds a way around it. Japan has almost no immigration, billions of old people and the young people that are there aren't having kids which will make the problem even worse in years to come. Even then the UK has a pretty funky looking aging population curve ahead of it.