Presenting The Winners And Losers In The Ongoing Currency Wars

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Wed, 12/21/2011 - 17:16 | 2002305 YesWeKahn
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The only option left, people will start using Gold as currency.

Wed, 12/21/2011 - 17:17 | 2002312 YesWeKahn
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XBOx: 1/4 gold bar.

coffee: 1/2048 oz of gold.


Wed, 12/21/2011 - 17:34 | 2002383 css1971
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Thu, 12/22/2011 - 03:41 | 2003615 Belarusian Bull
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I am a metric racist.

Wed, 12/21/2011 - 18:27 | 2002625 whatsinaname
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Indian currency sure getting slapped around - maybe thats what hurting them from getting more Au.

Wed, 12/21/2011 - 17:17 | 2002308 HedgeAccordingly
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1.75 in the 10 year? 20 handle melt up and currency didnt move today -

Wed, 12/21/2011 - 17:31 | 2002377 Let them eat iPads
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Currency Wars would make a good TV program.

Wed, 12/21/2011 - 17:53 | 2002459 Gene Parmesan
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They'd have to figure out a way to create and televise tracer MT300s.

Wed, 12/21/2011 - 20:32 | 2002984 gangland
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speaking of wars...

Finland impounds shipment of Patriot missiles, explosives in ship destined for Shanghai



Wed, 12/21/2011 - 17:36 | 2002397 lizzy36
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1. devalue

2. export crap to the island of misfit toys

3. export inflation to 2nd&3rd world countries

4. social instability begins

5. revolution and civil war (but as long as it is over there no problem)

6. start to replace democracy with technocracy

7. wait...........

Wed, 12/21/2011 - 19:55 | 2002899 Temporalist
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March of the Paper Soldiers

Wed, 12/21/2011 - 17:40 | 2002408 scratch_en_sniff
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umm, the thing about the Google search trends is that it depends a lot on the given context. A lot of people looking for the term "currency wars" probably have never heard of it before, hence just want to find out what the talking heads are yapping about. Its a bit like the quantitative easing thing, im sure there was a spike in that as well in Google trends…where the only thing that it indicated was that people didn’t have a clue what was happening. As for the Euro being devalued, I seriously don’t believe that the ECB has to do anything other than let the politicians get on with fucking things up naturally.

Wed, 12/21/2011 - 17:56 | 2002474 greased up deaf guy
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that, or most folks were looking up jim rickards' best-selling book of the same name... especially after the free publicity by roubini spouting off like a fool lately.

Wed, 12/21/2011 - 18:48 | 2002700 hyper-critical
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This is a good post, and I'm sure both the authors of this study and Tyler are well aware of the dangers of inferring anything from historical time series, but still gave me a chuckle. I'm positive Rickards' book contributed significantly to the recent increase, thus inferring anything about the future from that chart would be making the same high-school level stats mistake that 95% of 'market professionals' make every day...textbook non-stationarity.

Good book, by the way, from a guy who comes at markets with a unique perspective.

Wed, 12/21/2011 - 17:42 | 2002414 s2man
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??? USD is down only 6%?  AUS is up 40%? Why isn't AUSUSD @ 1.46?

It must be me...  dazed and confused.  But hey, Peter Tchir has admitted to being confused a couple of times this week.

Wed, 12/21/2011 - 18:37 | 2002664 tooktheredpill
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Don't forget the aussie plummeted big time at one stage in 09.

Wed, 12/21/2011 - 17:51 | 2002432 youngandhealthy
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Its obviously clear....US banks with huge capital in EU banks and Sovs are looking for the last rescuer. ECB.

QE in UK and US is over, both politicaly and money wise.

Now with huge Gross exposures (e.g. BoA with a gross @ 2700 BN with a pathetich net of 79Bn thru derivatives) is looking for a savior. ECB.


Wed, 12/21/2011 - 17:46 | 2002436 topcallingtroll
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Repudiation of certain obligations.

There is an option other than printing.

Wed, 12/21/2011 - 17:48 | 2002441 JustObserving
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How did we miss this?  About 40 minutes ago:


Fitch warns it may follow Standard & Poor's lead and downgrade America from its AAA rating, attacking the country's high and rising government debt burden.


Wed, 12/21/2011 - 18:29 | 2002633 z123
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gold is loser

after all  the problems in europe and usa gold should be trading now @3000 but it can't because it is a loser, that's my opinion

Wed, 12/21/2011 - 19:51 | 2002881 LeBalance
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ah I am able to see that you have truly reached the mountain top of yogic study.  Your asana practice is so advanced that you are supremely flexible in the spine.  It is regretable that you use this capability to eat your own feces as it seems to be affecting your cognitive capabilities.

this is not my opinion. it is a comedic jest.

Wed, 12/21/2011 - 20:03 | 2002928 DosZap
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Ask WHY?....................Margin hikes fkd us over,and then Europe.

As far as VALUE (real Value,not manipurtaled paper shit) it's still the ONLY place to put money, and ever hope to regain it.


Wed, 12/21/2011 - 18:38 | 2002644 akak
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Winners: Central governments and central banks (and perhaps, those who own PMs)

Losers: Everyone else


It is that simple. It always has been, and always will be during times of exponentially rising governmental debt and currency debasement, and no, we are NOT going to see any putative "deflation", because this time is NOT different!

Wed, 12/21/2011 - 20:47 | 2003015 economics1996
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That’s when we peasants reinvent the guillotine.  

Wed, 12/21/2011 - 18:38 | 2002673 Georgesblog
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Ah, good. You're keeping score. Does this mean we should be watching IRT: Most Dangerous Roads, more? Could see the next big thing in emerging markets.

Wed, 12/21/2011 - 18:57 | 2002728 Yen Cross
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 What about the abstainers?

Wed, 12/21/2011 - 19:57 | 2002908 CreativeDestructor
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and US piled into massive government debt while dollar was already week. US is doomed even on that criteria. It'll have to devalue even further to pay back debt or ask a magician to make it all go away...

Wed, 12/21/2011 - 20:05 | 2002934 Alex Kintner
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 Q: If you owed $15 Trillion in debt and could force inflation to make that worth 15 cents, what would you do?
 A: QE until there were no electrons left on the planet.

Wed, 12/21/2011 - 22:52 | 2003252 indygo55
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What would that do for gold and silver?

Wed, 12/21/2011 - 20:05 | 2002936 Yen Cross
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 The trade is upon us.   Spank me %0/%0.

Wed, 12/21/2011 - 23:07 | 2003282 f16hoser
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Welcome to the US Ameribanna.

Thu, 12/22/2011 - 01:12 | 2003498 Bill Shockley
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I am surprised there aren't more posts on this.

Trench warefare guess.

Gold will rise in price if market demand increases or market supply decreases in physical terms and further rise, if gold commands a higher fiat interest than bonds/fiat denominated in currency vs. spot gold price in fiat given an equal lending period.

No one wants gold/gld, fiat is way easier to use, digital is easier still, but you know that.

If the gold price is falling but the GOFO price is rising continue to buy. I learned that yesterday.


While the world's  reserve currency isn't stable, the EURO is at least  social so in the long run it is a better bet.

The Euro is more democratic and therefore stands a better chance for survival. The Euro public is better educated and the phsical plant is in better shape. There are fewer guns, better transport and a common history. Where hell could break loose is in the USA unless we change our ways.



Thu, 12/22/2011 - 01:23 | 2003519 rosiescenario
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....and they were in containers marked "fireworks".....and they were from Germany.

This is one interesting article.....

Thu, 12/22/2011 - 01:52 | 2003551 steveo
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I still think this is the best Christmas Gift I have ever received (even if I had to buy it).  

 Celestron C8 SGT XLT

Visitors to my site kliking ads have helped pay for 7% of this fine beast, and I appreciate that, since with accessories I was $1200 over budget, ouch.    Consider stopping by and viewing some scope pics, etc.   I actually do stock charts too!

A fantastically good telescope, able to hook up to a camera, and also able to hookup to a computer and be controlled by the computer ...."go to Orion Nebula" and it takes you right there.    It has its own GPS so it has a pretty good idea where it is in the world, then you just point it at any three bright sky objects, and it then knows automatically where everything is Exactly.    Pick any 3 bright objects and you don't even have to tell it what those objects are.

Now that is cool!


The Scope is only about 60 lbs wet (lets hope it doesn't get wet), but is a beast at gathering light.   These are actual pictures.   

C'mon how about a little Christmas present for steveo?    Thanks and have a Happy Holiday season.  I will probably be pretty scarce between Christmas and New Years as far as blogging goes.

Thu, 12/22/2011 - 05:43 | 2003645 The Monkey
The Monkey's picture

I woudn't say that it's by any stretch of the imagination, absolute, that endless devaluation into the abyss in the cards. The prolific number of articles such as this, speak for themselves. Watch voter sentiment in this electoral cycle. Bailouts and massive open market purchases are looking increasingly long-in-the-tooth, politically and practically.

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