Global Currency Wars Enter New Stage
BY MICHAEL SHEDLOCK
Fighting the Fed has reached a new stage: all out currency wars.
The Fed is desperate to tank the US dollar to stimulate exports and further fuel a stock market that is clearly back in bubble territory. However, central bankers in other countries have had enough.
Japan and Switzerland intervened heavily in the forex markets on Wednesday. Other countries, fed up with Fed policies and a weak dollar now threaten to do the same.
For a recap Wednesday’s intervention news, please see
Quantitative Easing Begins in Switzerland to Counteract Soaring Swiss Franc, Central Bank “Aims to Bring 3-Month LIBOR to 0%”; Gold Soars
Japan Intervenes, Yen Plunges; What’s Next?
What’s next is already at hand: Currency Wars Enter ‘New Stage’
“We seem to be entering a new stage of the currency wars where it’s not just the emerging markets that are responding to broad dollar weakness,” said Callum Henderson, global head of currency research at Standard Chartered Plc in Singapore, who has written books on currency markets. “Expect much more intervention in the future and further acrimony in terms of how the U.S. dollar is doing.”