Tag Archives: yuan

China’s Insurmountable Global Weakness: Its Currency

Quick history quiz: in all of recorded history, how many superpowers pegged their currency to the currency of a rival superpower? Put another way: how many superpowers have made their own currency dependent on another superpower’s currency? Only one: China. China pegs … Continue reading

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Is the U.S. Dollar Set to Soar?

Hating the U.S. dollar offers the same rewards as hating a dominant sports team: it feels righteous to root for the underdogs, but it’s generally unwise to let that enthusiasm become the basis of one’s bets. Personally, I favor the … Continue reading

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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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China: Doomed If You Do, Doomed If You Don’t

Many commentators have ably explained the double-bind the central banks of the world find themselves in. Doing more of what’s failed is, well, failing to generate the desired results, but doing nothing also presents risks. China’s double-bind is especially instructive. … Continue reading

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