Seeking Alpha

As expected, the G-20 yesterday reiterated their commitment to "market-determined exchange rate...

As expected, the G-20 yesterday reiterated their commitment to "market-determined exchange rate systems" and promised not to "target our exchange rates for competitive purposes." There was no criticism of Japan for driving the yen lower, but then why should there be when its only doing what others are doing - printing lots more money. The G-20 even expressed support for using monetary policy to boost growth.
Comments (7)
  • "There was no criticism of Japan for driving the yen lower, but then why should there be when its only doing what others are doing - printing lots more money."

     

    Now, now. That's awfully close to an editorial comment.

     

    This is better: "The G-20 even expressed support for using monetary policy to boost growth."

     

    At last. The nub. I hope the U.S. representative was leading from behind on that one.

     

    I choose world GDP growth of 6.5% next year. That should get us out of our doldrums.

     

    Anybody second me?

     

    When I was a lad it was "GNP." Once we achieve global unity and peaceful regulated growth will it be "WGP?" "World Global Product?

     

    Forward!
    17 Feb 2013, 09:43 AM Reply Like
  • Its actually in the interest of the US for Japan to devalue. They are basically taxing their domestic populace to discount what they sell to us. In that vein, I would say 2% inflation is too low. We should encourage the to target 6% inflation, or better yet just tax their populace to the extent it allows their exporters to send us their exports for free. That would mean a loss of jobs for the US, but if all Japanese products were free, you could get a part-time job delivering pizza in a brand new Nissan GTR.
    18 Feb 2013, 08:05 AM Reply Like
  • Well all they would have to do is sell Treasuries aggressively. U.S rates would rise. Dollar would fly and Yen would get weaker. The whole world has the U.S. over the barrel.
    17 Feb 2013, 01:15 PM Reply Like
  • Don't worry, Ben Bernanke is always on standby to absorb extra liquidity when required. Heck, he may even call this part of QE5. When it comes to the Fed, there's no US Fixed Income instrument it does not like, owner be damned.
    18 Feb 2013, 02:13 AM Reply Like
  • Confirmation that most governments will join the race to the bottom on currency value, while deploring the policy. What you can not change you must accept if you want to go on in G20. Otherwise the people will notice the G20 is not in control anything but the lunch menu.

     

    Now they must control the prices of precious metals, real assets, land. A despots work is never done!!
    18 Feb 2013, 10:11 AM Reply Like
  • Yes indeed. Heaven forbid that they would allow the "evil speculators" to get their wicked ways and inflate hard assets while "shorting"(gasp!) their hallowed sovereign bonds and currencies......
    There's no currency war here people - move along!
    Jokes aside, clearly a case of one needing to watch what they do(and not say!) and not what they say!
    These truly are interesting times.....
    18 Feb 2013, 08:11 PM Reply Like
  • The most evil of all speculators IS Ben Bernanke
    19 Feb 2013, 09:03 AM Reply Like
DJIA (DIA) S&P 500 (SPY)