Visualizing The Currency Wars

Tyler Durden's picture

After the spectacular moves of late 2008, currency market volatility slowly reverted to more normal ranges, with a few exceptions over the course of 2009-2011. However, as Saxo Bank notes, since the start of the year, firebrand rhetoric is forcing currencies lower. The yen has fallen a stunning 17% against the US dollar and over 20% versus the Euro in the three months since Japan’s newly elected prime minister Shinzo Abe took charge. This has reignited the global currency wars. But who are the winners and losers? Follow the three step process outlined in the infographic below and have your say at the #FXdebates. As you can see, currency debasement has given rise to a rally in equity markets (for now), but major economies, both advanced and emerging, have been slow to recover.


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Temporalist's picture

All drones are humanitarian; they only kill the bad people.

john39's picture

they appear to have a fetish for killing brown children.  i guess they all must be terrorists. the teleprompter told obomber to tell us that anyway.

fonzannoon's picture

look at that S&P just sit there at 1,500. That looks natural.

kaiserhoff's picture

Like Marge Simpson's blue hair???

kaiserhoff's picture

Long barbarous relics.

OutLookingIn's picture

Next? Price controls.

Wages? Already low and heading lower still!

Visions of Argentina coming soon.

Temporalist's picture

The forgot to mention Hard Asset (Precious Metal) Propaganda, Central Bank Gold Leasing and Bullion Bank Manipulation.

kridkrid's picture

Hey SAXO, USA Today called, they like your style.

StychoKiller's picture

Whose bloody, brillant idea is it to use gray text on a white background?  Couldn't afford black ink?


ParkAveFlasher's picture

Winners: Bankers

Losers: You

Temporalist's picture

You are not mixing your Koolaid properly.  The PC Police demand you say "We are all winners, nobody is a loser."  That is the new world progressive way.

PUD's picture


Clowns on Acid's picture

Interesting info... especially the Big Mac index.
Switzerland has the highest @ 6.56 USD, whereas China and Mexico have the lowest @ 2.45 and 2.70 respectively.

Must be reflecting the probability of horse meat being greater than 50% in burger.

wee-weed up's picture

Yeah, horse meat aside... I'd like to know how many of those countries in the Big Mac index still use pink slime in their burgers.

Panafrican Funktron Robot's picture

I would bet the United States is still one of those countries, despite the supposed "ban".  

buzzsaw99's picture

All deflation will be met with bigger bank bonuses. That is all.

dbTX's picture

I can't understand the Fed's hard on about people owning gold, after all should the gold standard be reinstated the US wins hands down, we've got more than any other soverign, and I win because I've got.....well you know.

buzzsaw99's picture

after all should the gold standard be reinstated the US wins hands down


joo r crazy holmes

Whalley World's picture

If they go on a Tungston Exchange System perhaps.

KnightTakesKing's picture

Egro the BigMac index: What meat is in that burger?

WhiteNight123129's picture


Off topic.

Real estate imploding in France now after Spain.


Temporalist's picture

Another factor in the currency wars:

Portugal seizes huge haul of fake euros

"The counterfeit notes were "of exceptional quality", officials said."


Euro coin counterfeiting up 17 percent in 2012

Edward Fiatski's picture

Must've been a shipment from Draghi, they use more discrete methods for the Club Med - like submarines!

WhiteNight123129's picture

Nope, I would bet the Portuguese secret service working with the former Bank of Portugal and Oficio das moedas to ease the pain of the Portuguese (Fuck Merkel).


joego1's picture

They were probably real, just another sort of tax of sorts.

FranSix's picture

The irony in all this is some of the biggest players in GLD dumped their positions to score a few points in the Yen and the Pound.

Whalley World's picture

Dumping GLD seems like the prudent thing to do. 

Panafrican Funktron Robot's picture

Particularly because we have no idea whether Paulson and Soros sold their GLD positions, or merely redeemed their GLD positions for phys.  

Edward Fiatski's picture

A fucking Royale with CHEESE costs $6.56 in Switzerland!! I'm saving this Infographic for future reference.


orangegeek's picture

As the US Dollar rises, the markets should fall.  Below is an overlay of the SP500 and USD.


With the Euro, Yen, GBP, and CDN tanking, the USD should continue upward.

TraderTimm's picture

Using USD price as a reference, you can buy a Big Mac with 0.145 Bitcoins.

And its been appreciating against all sovereign currencies and precious metals by a large margin.

Rantabulous's picture

I see Australia pop up in a number of these 'currency wars' articles. Except for maybe currently being a loser of it in most respects, I wonder why we even rate a mention? Thanks in advance for any insights someone might have to share.

Orly's picture

Several reasons:

  • The Australian dollar is currently the only major currency paying any interest whatsoever.
  • Safe-haven flows have moved decidedly into the currency until all was saved in Europe a couple of months ago.  Now that it's not really all unicorns and bicycles, expect the currency to move much higher in the coming weeks as money moves back into the stable currency.
  • The RBA will not jack with interest rates any time soon.
  • As a commodity currency, the Australian dollar has its pulse as gold, palladium, copper and iron ore.  You know...real stuff.


Kirk2NCC1701's picture

Jim Rickards, you and your crew started these CW Games at Club-Fed!  What's next, what do you have to say for yourself?  Don't make me ask twice... I've got Chekov and Sulu on the edge with photon torpedoes, and "not afraid to use them".  -Jim Kirk

StychoKiller's picture

C'mon Cap'n, get this party started! :>D