http://www.kitco.com/reports/KitcoNews20130211JW_am.htmlLater this week the Group of 20 nations meets in Moscow. A main topic will be currency values as many industrialized nations have in recent months, or longer, worked to devalue their currencies to revive their economic growth. There is growing concern that “currency wars” could break out if there is not some form of agreement reached soon by the major nations. At present, Japan is seen as the major instigator as the yen continues to plummet in value. Reports during the weekend said the U.S. and European Union finance officials are considering issuing a joint statement on the matter, designed to ease growing worries and to send a warning to other countries. If the major countries cannot come to meaningful agreement on the matter and continue to work to devalue their currencies, that could become a major bullish force for the gold market, which is viewed by many traders and investors worldwide as a safe-haven “hard currency.”In other news, the OECD said in a report Monday that the European Union debt crisis is stabilizing amid Euro zone economic improvement. The group also said there will be economic growth divergence in the near future, with the U.S., U.K., Japan and Brazil showing economic growth, while China, Canada, France and India are set for economic weakness in the coming months.The U.S. dollar index is firmer early Monday but did hit a fresh four-week high overnight. The greenback bulls have gained some fresh upside near-term technical momentum recently, but the bears still have the overall near-term technical advantage. Re: “currency wars,” it seems all nations are feeling themselves gauged by some/all the devaluations of the others. Frankly, I can’t see a lasting “form of agreement” coming out of this month’s Group of 20 meeting.
Re: “currency wars,” it seems all nations are feeling themselves gauged by some/all the devaluations of the others. Frankly, I can’t see a lasting “form of agreement” coming out of this month’s Group of 20 meeting.matsonI wandered quickly by your post this morning then came back because the thought of the G20 doing anything about currency wars other than fly half way around the world, eat a lot of food and have copious toasts about any agreement they manufacture seemed so completely out of place. Countries manipulate (OK they call it rate setting) currencies constantly and while we may tut tut the Japanese for grabbing a short term lead in the race to the bottom I'm sure most of the others are trying to figure a way to trip them up so they can grab the short term lead. In truth every nation has every right to do whatever they want with their currency as long as they are willing to accept the bad with the good of trying to win the race to the bottom. Clearly it can't work anymore than all nations can become exporters since someone has to be on the other end? We Canucks had the good sense to do it back in the days before it became popular. }};-DTim
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