Thursday, April 28, 2016

Is Japan Breaking From The Shanghai Accord?
[Cliff Comment: Currency Wars is bit of a misnomer when Central Banks are cooperating with each other for the benefit of the banking system & at the expense of the general population. This is what we have been going through since 2009. The Central Banks have been cooperatively debasing all major currencies. Q: Cui Bono? A: The banks that otherwise would have been bankrupt & those who benefit from the status quo of the financial system. Q: Who loses? A: Those who rely on currency maintaining its value .. those who save their money & are relying on it for future income .. like pensioners .. ie. the general population.]
Question: What happens if the Central Bank alliance breaks down & one of the Central Banks starts serving its general population instead of the banking system? Answer: ???? .. After all, it is mainly the U.S. Central Bank that is privately controlled, whereas most others are supposed to be serving the general population.
The Bank of Japan was supposed to allow their currency to get a bit stronger, per The Shanghai Accord from the G20 meeting in Shangahi this year - but it announced this week more monetary easing if necessary .. "They are in the business of manipulating the JPY lower. After all the most recent G20 meeting once again confirmed that absent 'disorderly moves' in the Yen, the U.S. would frown on any attempt to dramatically manipulate its currency lower. Unless, of course, Abe wants to send Lew and Obama a message, that if China can enjoy a weaker dollar (courtesy of its U.S.$ peg), then so should the Bank of Japan."
LINK HERE to the commentary

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