This article was published in El Confidencial on January 26th, 2013 and in English in The Commentator

“Devaluation rarely helps the economy rarely, but it can help investors’ Matt Lynn
“This year, currency fracas could morph into global currency war”. David Petitcolin

How do we get out of a debt problem and stagnation that only worsened with stimulus?. The concerns about an all-out global currency war, triggered by Japan’s latest move, was discussed by the G-20 and in Davos as central banks become increasingly politicized and intervened. Continue reading Why currency wars fail →

This article was published in El Confidencial (courtesy @migartua)

“The erosion of central bank independence around the world threatens to unleash a round of competitive exchange rate devaluations. It is already possible to observe alarming infringements, for example in Hungary or in Japan, where the new government is massively involving itself in the affairs of the central bank, is emphatically demanding an even more aggressive monetary policy and is threatening an end to central bank autonomy,” JensWeidmann (Here)

Central banks have become the main weapon of countries to try to revive their battered economies by devaluing their currency aggressively against the rest. The world is fully immersed in the so-called currency war and the “aggressive” easing announced yesterday by the Bank of Japan is but one more episode of this strategy that has its maximum expression in the U.S. since the financial crisis of 2008. Continue reading Currency wars and Germany’s gold →