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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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Thu, 02/21/2013 - 14:46 | 3264148 SafelyGraze
Thu, 02/21/2013 - 14:51 | 3264161 Temporalist
Temporalist's picture

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

Thu, 02/21/2013 - 15:13 | 3264222 john39
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.

Thu, 02/21/2013 - 16:22 | 3264586 The Heart
Thu, 02/21/2013 - 14:48 | 3264152 fonzannoon
fonzannoon's picture

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

Thu, 02/21/2013 - 14:49 | 3264155 kaiserhoff
kaiserhoff's picture

Like Marge Simpson's blue hair???

Thu, 02/21/2013 - 14:48 | 3264153 kaiserhoff
kaiserhoff's picture

Long barbarous relics.

Thu, 02/21/2013 - 15:16 | 3264229 OutLookingIn
OutLookingIn's picture

Next? Price controls.

Wages? Already low and heading lower still!

Visions of Argentina coming soon.

Thu, 02/21/2013 - 14:49 | 3264156 Temporalist
Temporalist's picture

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

Thu, 02/21/2013 - 14:51 | 3264160 kridkrid
kridkrid's picture

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

Thu, 02/21/2013 - 22:33 | 3265692 StychoKiller
StychoKiller's picture

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

 

Thu, 02/21/2013 - 14:53 | 3264167 ParkAveFlasher
ParkAveFlasher's picture

Winners: Bankers

Losers: You

Thu, 02/21/2013 - 14:56 | 3264170 Temporalist
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.

Thu, 02/21/2013 - 14:56 | 3264171 PUD
PUD's picture

IF THE JAPS ARE BUYING OIL IN $$$ THEN THAT'S A HYPER INFLATION PRINT RIGHT THERE...GL ABE!

Thu, 02/21/2013 - 14:58 | 3264180 Clowns on Acid
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.

Thu, 02/21/2013 - 15:08 | 3264211 wee-weed up
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.

Thu, 02/21/2013 - 18:19 | 3265008 Panafrican Funk...
Panafrican Funktron Robot's picture

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

Thu, 02/21/2013 - 15:05 | 3264200 buzzsaw99
buzzsaw99's picture

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

Thu, 02/21/2013 - 15:06 | 3264201 dbTX
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.

Thu, 02/21/2013 - 15:07 | 3264209 buzzsaw99
buzzsaw99's picture

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

 

joo r crazy holmes

Thu, 02/21/2013 - 15:17 | 3264235 Whalley World
Whalley World's picture

If they go on a Tungston Exchange System perhaps.

Thu, 02/21/2013 - 15:06 | 3264203 KnightTakesKing
KnightTakesKing's picture

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

Thu, 02/21/2013 - 15:14 | 3264221 WhiteNight123129
WhiteNight123129's picture

SWITCH YOUR GOLD IN EUROS BITCHEZ!!!

Off topic.

Real estate imploding in France now after Spain.

http://www.lemonde.fr/immobilier/article/2013/02/21/les-ventes-de-maison...

 

Thu, 02/21/2013 - 15:15 | 3264227 Temporalist
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."

http://www.bbc.co.uk/news/world-europe-21528262

 

Euro coin counterfeiting up 17 percent in 2012

http://theportugalnews.com/news/euro-coin-counterfeiting-up-17-percent-i...

Thu, 02/21/2013 - 15:49 | 3264383 Edward Fiatski
Edward Fiatski's picture

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

Thu, 02/21/2013 - 16:47 | 3264700 WhiteNight123129
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).

 

Thu, 02/21/2013 - 21:57 | 3265586 joego1
joego1's picture

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

Thu, 02/21/2013 - 15:16 | 3264232 FranSix
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.

Thu, 02/21/2013 - 15:18 | 3264247 Whalley World
Whalley World's picture

Dumping GLD seems like the prudent thing to do. 

Thu, 02/21/2013 - 18:21 | 3265014 Panafrican Funk...
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.  

Thu, 02/21/2013 - 15:46 | 3264373 Edward Fiatski
Edward Fiatski's picture

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

Merci

Thu, 02/21/2013 - 15:49 | 3264390 orangegeek
orangegeek's picture

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

 

http://bullandbearmash.com/chart/2003-dollar-falls-markets-rise-vice-versa/

 

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

Thu, 02/21/2013 - 17:40 | 3264884 TraderTimm
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.

Thu, 02/21/2013 - 18:12 | 3264984 Rantabulous
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.

Thu, 02/21/2013 - 18:21 | 3265013 Orly
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.

:D

Thu, 02/21/2013 - 19:16 | 3265176 Kirk2NCC1701
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

Thu, 02/21/2013 - 22:39 | 3265709 StychoKiller
StychoKiller's picture

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

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