currency

Devaluing the Dollar - Against What? Courtesy of Jesse's Cafe Americain  When people talk about devaluing the dollar, as opposed to reissuing it completely, the natural question is, against what? What would one devalue it against officially if you do not wish to...

The idea that the very same economic forces that are currently plaguing Greece, et al., are somehow not relevant to the United States' circumstances does not hold water.  As goes the rest of the world, so goes the US.  When we back up far enough, it is clear that money and debt are there to reflect...

As fundamental problems put a serious question mark to the feasibility of the European Union existing as a financial entity, many question its purpose and continued existence. There is no question that the 1999 adoption of a single currency--designed to abolish barriers to trade between member...

The only way to value the dollar is in the context of a mercantilist, export-dependent global economy anchored by a sole "importer of last resort," the U.S., which funds these vast imports with its fiat currency, the dollar. Yesterday I explained why a gold-backed currency cannot replace the fiat...

The demise of the dollar as the grease of global trade would trigger global depression, political instability and the end of the Status Quo everywhere. No wonder it's still around. Yesterday I set up the historical context for understanding "currency wars" and the key role of exporting surplus...

With concerns about the U.S. debt ceiling and European bailouts continuing to persist, many investors are looking for ways to hedge against the falling euro and greenback. Gold has become a popular investment for many, but it's not the only game in town. One answer could lie with the Swiss Franc...

Last month's bullish forecast by the International Monetary Fund is another reason to bet on the Chinese yuan. The IMF estimates that developing economies in Asia will expand 8.4% this year, compared with 2.8% growth in the U.S. Overall, the yuan has appreciated 4.92% against the greenback in the...

As the bi-winning Fed's chairman prepares to give his first press conference on Wednesday at 2:15pm Eastern Time after the April Fed meeting, which started on Tuesday, stock markets can't wait but started celebrating already. With Volatility Index (CBOE: ^VIX) dropped back close to its 2007 level...

While a lot of investors think it is the improving economy that is propping up the stock market, the real factor is always about the money printing press. For all those who remembered Q1 of last year, which now seems a lifetime ago, all the bulls were talking about V-shaped recovery, but got...