LATEST NEWS: A Day Of Reckoning For The Euro Has Arrived – 26 TRILLION In Currency Derivatives At Risk

This is the month when the future of the eurozone will be decided.  This week, Greek leaders will meet with European officials to discuss what comes next for Greece.  The new prime minister of Greece, Alexis Tsipras, has already stated that he will not accept an extension of the current bailout.  Officials from other eurozone […]

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LATEST NEWS: Japan’s Recession Deepens as Election Looms for Abe: Economy

Japan’s recession was deeper than initially estimated as company investment unexpectedly shrank, a blow to Prime Minister Shinzo Abe as he campaigns for re-election on his economic credentials. The economy contracted an annualized 1.9 percent in the July to September period from the previous quarter, weaker than the 1.6 percent drop reported inpreliminary data. The […]

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LATEST NEWS : Kuroda Has Draghi in a Bind as Euro Soars Against Yen

Mario Draghi has something new to worry about as he prepares for tomorrow’sEuropean Central Bank policy meeting: the euro-yen exchange rate. The yen approached a six-year low versus the shared European currency after Bank of Japan Governor Haruhiko Kuroda surprised investors late last week by extending his record stimulus program. Kuroda’s actions jeopardize the weaker […]

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LATEST NEWS : It’s Currency War! – And Japan Has Fired The First Shot

This is the big problem with fiat currency – eventually the temptation to print more of it when you are in a jam becomes too powerful to resist.  In a surprise move on Friday, the Bank of Japan dramatically increased the size of the quantitative easing program that it has been conducting.  This sent Japanese […]

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LATEST NEWS : Currency Wars Are Back: 'Export Your Deflation to Someone Else'

Currency wars are back, though this time the goal is to steal inflation, not growth. Brazil Finance Minister Guido Mantegapopularized the term “currency war” in 2010 to describe policies employed at the time by major central banks to boost the competitiveness of their economies through weaker currencies. Now, many see lower exchange rates as a […]

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LATEST NEWS : Global Equities Fall on Signs of Europe Weakness, Russia

U.S. stocks followed European equities lower amid growing signs of economic weakness in the euro area and rising tensions over Ukraine. Treasuries rose as investors weighed American labor data. continue reading at bloomberg.com

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LATEST NEWS : Draghi Devaluing Euro Cheers ECB as Inflation Seen Fading

Mario Draghi’s strategy for reviving the euro area looks like devaluation. While the European Central Bank president says the exchange rate isn’t a policy target, officials aren’t secretive about their approval of the currency’s almost 10 percent slide. The depreciation increases the cost of imports and boosts exporters’ competitiveness, aiding the effort to revive inflation […]

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LATEST NEWS : SNB Won’t Exclude Negative Interest Rates, Spokesman Meier Says

The Swiss National Bank is willing to take further measures such as negative interest rates if pressure on the franc intensifies, spokesman Walter Meier said today. “If needed we would take extra measures, with a negative rate a conceivable option,” Meier said by phone from Zurich, adding that this was the SNB’s standard comment. The […]

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LATEST NEWS : MegaFon Shifts Cash to Hong Kong Dollars on Sanction Risk

OAO MegaFon (MFON), billionaire Alisher Usmanov’s wireless operator, said it has been shifting cash holdings into Hong Kong dollars, a move people say metals producer OAO GMKNorilsk Nickel (GMKN) is also undertaking, as the U.S. and Europe ratchet up sanctions against Russia. MegaFon decided to keep about 40 percent of its cash in Hong Kong dollars given the global […]

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LATEST NEWS : De-Dollarization: Russia Is On The Verge Of Dealing A Massive Blow To The Petrodollar

Is the petrodollar monopoly about to be shattered?  When U.S. politicians started slapping economic sanctions on Russia, they probably never even imagined that there might be serious consequences for the United States.  But now the Russian media is reporting that the Russian Ministry of Finance is getting ready to pull the trigger on a “de-dollarization” […]

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