Currency War Begins, The U.S. Dollar Collapse Is Accelerating: Fed’s Balance Sheet Hit Record $3 Trillion, The Stock Market Is Back To December 2007 Levels, $114 Billion Withdrawn From Banks Last Month, The World 2nd And 3rd Largest Economies Are For The First Time In History Trading Their Currencies Directly. The Trend Is Pretty Clear!!
January 26th, 2013
Currency war talk has dominated discussions at the Swiss ski resort of Davos
The Japanese currency is now trading around a 2-1/2 year low against the dollar at around 90 yen, as the market remained focused on Japan’s pursuit of a reflationary economic policy.
Talk about a currency war has dominated discussions at the Swiss ski resort of Davos this week, with many central bankers and business executives questioning the wisdom of continuing an easy money policy.
Currency War Between The US, China, Japan In Process, Euro Could Be Next To Join The War. WGC Confirms The Chinese Are Going To Back The Yuan With Gold!!
Fed Enters ‘Uncharted Territory’ as Assets Hit $3 Trillion
Federal Reserve Chairman Ben Bernanke’s unprecedented bond buying pushed the Fed’s balance sheet to a record $3 trillion as he shows no sign of softening his effort to bring down 7.8 percent unemployment.
The Fed is purchasing $85 billion of securities every month, using the full force of its balance sheet to stoke the economic recovery. The central bank began $40 billion in monthly purchases of mortgage-backed securities in September and added $45 billion in Treasury securities to that pace this month.
“We’re in uncharted territory,” said Julia Coronado, chief economist for North America at BNP Paribas SA in New York, and a former Fed economist. Even as “the easy money will flow through financial markets and into the real economy at some point and lift us to a better growth trajectory,” the U.S. faces “a lot of risks,” she said.