Why "Fair Play" In A Central Bank Interventionist World Is A Doomed Strategy
Today's special report by Faros Trading summarizes the pathetic, uber-interventionist world we live in "It seems quite obvious that not employing market intervention when the rest of the world is, tends to lead down a lonely path. One where no matter how efficient your technology prowess is, you can never export competitively against the rest of the world. After all, why buy from the US if it is cheaper in Asia? Over time the manufacturing centers of Europe, Japan and the United States have dwindled as jobs have moved overseas. The only way for the US, Europe and Japan to end the spiral of economic pain is for either an end to intervention by developing markets, or for developed markets to join in the physical intervention game. The way this game is played at present can only lead to an unfortunate trade war down the road." Alas, as Michael Pettis pointed out earlier, it is likely too late as Smoot-Hawley for the Central Bank interventionist generation is now just around the corner.