Tag Archives: yen

The Coming War of Central Banks

History has shifted, and we’re leaving the era of central bank convergence and entering the era of central bank divergence, i.e. open conflict. In the good old days circa 2009-2014, central banks acted in concert to flood the global banking … Continue reading

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FX Crisis Brewing: Japan Needs a Stronger Dollar, China Wants a Weaker Dollar: The Fed Can’t Please Both

Foreign exchange (FX) is a zero-sum game: if one currency weakens, another must strengthen. Since the value of a currency is relative to other currencies, all currencies can’t weaken together: at least one currency must strengthen as others weaken. That … 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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The Counter-Intuitive Rise of the U.S. Dollar

As things get dicier globally, assets in periphery nations typically get dumped as mobile capital flees risk and migrates to lower risk core nations and currencies. I received many thoughtful comments on Why the Dollar May Remain Strong For Longer Than We Think. … Continue reading

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