Forbes (September 9)
“There is a country that, more than any other, needs the Federal Reserve to embark on QE3.” A third program of quantitative easing “may not help the U.S., but China certainly stands to gain.” QE3 is expected to weaken the dollar. “A weak American currency means a weak Chinese one, and a weak Chinese currency helps the nation’s struggling exporters on global markets.”
Forbes (June 27)
“The euro is going to survive despite all the crises and the growing punditry consensus that this experiment is doomed to fail. The currency will live on for political reasons—Germany and France want it to.”
“The euro is going to survive despite all the crises and the growing punditry consensus that this experiment is doomed to fail. The currency will live on for political reasons—Germany and France want it to.”
Euromoney (May 21)
As the European currency crisis continues to unfold, the spotlight shifts. “Spain’s economic political future hangs in the balance, as fears over Greece’s exit from the eurozone leave the credibility of its financial stabilization plans in tatters without urgent redress from eurozone policymakers.” And if Spain falls to contagion, there’s no telling where the downward spiral will end, though Italy would probably be the next to fall.
The Economist (May 12)
“Amid growing risk of a Greek exit, the euro zone has yet to face up to the task of saving the single currency itself…. The idea of a chaotic Greek departure from the euro at a time of Franco-German disunion should terrify everyone it touches…. Like some dreadful joke, the euro needs French reform, German extravagance and Italian political maturity.”
Investment Week (January 26, 2012)Investment Week (January 26, 2012)
“The euro needs to see a sharp fall of at least 30%, bringing it into line with the US dollar, or else the eurozone is ‘doomed.’” That warning came from economist Nouriel Roubini. He believes a major drop in the currency is the only way to “restore stability and competitiveness” in Europe.
Investment Week (January 26, 2012)
“The euro needs to see a sharp fall of at least 30%, bringing it into line with the US dollar, or else the eurozone is ‘doomed.’” That warning came from economist Nouriel Roubini. He believes a major drop in the currency is the only way to “restore stability and competitiveness” in Europe.
Wall Street Journal (December 9)
Many still blame an artificially high yuan for ongoing economic woes in the U.S. Markets say otherwise. “The yuan has traded at the softer edge of the narrow band around which Beijing allows its exchange rate to fluctuate, notwithstanding Beijing’s effort to push the reference rate stronger.” Other facts also point to an overvalued, not undervalued, Chinese currency. October marked China’s first net outflow of capital since 2007. Wealthy Chinese, importers and exporters are increasingly retaining dollars or moving money offshore. “Insiders are wary of the currency’s—and the economy’s—near-term future.”
Institutional Investor (December 7)
“The Indian rupee has declined 12.8 percent against the U.S. dollar since the beginning of the year, making it the worst-performing currency in Asia.” Due to both domestic and external pressures, the Indian rupee looks unlikely to strengthen despite possible intervention by the Reserve Bank of India.
New York Times (September 28)
“The world has barely dug out of recession and the global economy is again slowing dangerously. Most leaders seem eager to make things even worse.” China should let its currency rise. The U.S., Germany, Britain and other rich countries should be spending to spur growth. Instead, everyone seems to be doing exactly the wrong thing, which “is what caused the Great Depression.”
“The world has barely dug out of recession and the global economy is again slowing dangerously. Most leaders seem eager to make things even worse.” China should let its currency rise. The U.S., Germany, Britain and other rich countries should be spending to spur growth. Instead, everyone seems to be doing exactly the wrong thing, which “is what caused the Great Depression.”
Tags: Currency, Economy, Great Depression, Growth, Spending
Financial Times (September 19)
“There are no examples of lasting currency unions that are not ultimately backed by a political union.” The EU papered over this and other shortcomings in hopes that the economic benefits of monetary integration would lead to popular support. Instead national identities remain “much stronger than any common European loyalty.” This hinders leaders from extending decisive support to solve the eurozone’s problems, making clear “the limits to European solidarity.”
Tags: Currency, EU, euro, Loyalty, Solidarity
Financial Times (March 6)
In times of trouble, investors flock to the U.S. dollar. Or did. Despite turbulence in the Mideast, the Financial Times reports, “Hedge funds and forex dealers are betting record amounts against the dollar, reflecting a growing belief that the US currency has lost its haven appeal and that eurozone interest rates will soon rise.”
