Tag Archives: foreign exchange

Is This How the Next Global Financial Meltdown Will Unfold?

I have long maintained that the structural imbalances of debt and risk that triggered the Global Financial Meltdown of 2008-2009 have effectively been transferred to the foreign exchange (FX) markets. This creates a problem for the central banks that have … Continue reading

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Why the Fed Would be Insane to Raise Rates: The Rising U.S. Dollar

The parlor game of the moment is laying odds on the Federal Reserve’s decision to raise rates, leave rates unchanged, or (gasp!) hint at future stimulus. There are certainly a multitude of inputs to the Fed’s decision, and a variety … Continue reading

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Where Will Risk Erupt This Time?

So where has all the risk pooled up in the system? In foreign exchange (FX) markets, that’s where. One of the precepts of this blog is that risk cannot be disappeared, it can only be transferred or temporarily hidden from view. This … Continue reading

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