In the past I have criticized the CNBC tagline, “Live From The Most Powerful City In the World, New York.” I find it arrogant and devoid of any perspective. What makes a city powerful? In some sense I suppose it’s the ability to make and shape events around the globe. Wall Street may be a powerful money center but so is London and from a political and monetary sense Beijing has catapulted itself a spot among the most influential. Friday morning I did an interview with Gordon Long of the Financial Repression Authority, a must visit site for its archive of discussions on global macro issues. We were discussing the role of China in affecting U.S. monetary policy. Gordon Long has discussed the idea of an agreement reached in February at the G-20 meeting in Shanghai about an ACCORD to keep the U.S. dollar stable to weak in an effort to prevent the Chinese from actively pursuing a weaker YUAN for when the DOLLAR RALLIES THE YUAN IS ALSO PUSHED HIGHER AGAINST A BASKET OF DEVELOPED MARKET CURRENCIES AND CERTAINLY AGAINST OTHER EMERGING MARKET FX.
Posts Tagged ‘YEN/YUAN’
We are in a period of great political uncertainty. The Greek election is a wake-up call for all the established elites and their sycophants who drink high-priced alcohol to celebrate every new IPO and record high made in global equity indices. The recent victory of Syriza is a call to arms by citizens that have grown tired of broken promises and inept leadership. Fringe parties achieving electoral success in a very short period of time is a critical sign of electorates moving away from the establishment as record-high unemployment has continued for several years and the continued pain of austerity has rendered the European middle class a group without hope. The leaders of Syriza have promised the Greek people that they would throw off the burden of massive debt payments while being enslaved to a policy of FISCAL CONTRACTION.