quick fx update
Posted by WARREN MOSLER on January 24th, 2011
The Center of the Universe
St Croix, United States Virgin Islands
MOSLER'S LAW: There is no financial crisis so deep that a sufficiently large tax cut or spending increase cannot deal with it.-
MMT: Taxes function to regulate aggregate demand, and not to raise revenue per se.
Warren’s Book:
Buy it or read it free online!
"The most important book ever written" -Elizabeth O'ToolRecent Posts
-
The funds to pay taxes and buy government securities come from government spending.
Subscribe To:
Links
Internet Life
January 24th, 2011 at 3:27 pm
You favor $ over the euro and you favor euro over the yen. So the trade is long usd/jpy?
Reply
WARREN MOSLER Reply:
January 24th, 2011 at 3:42 pm
that would be my humble opinion on how I currently read the ‘fundamentals’
and my mind can change quickly as circumstances change. particularly the price of crude.
and brent nearly $10 over wti definitely clouds the picture
Reply
Curious Reply:
January 24th, 2011 at 4:57 pm
US imports about 12M barrels/day, so let’s say $10 price drop translates into $120M reduction in supply of dollars abroad.
In your opinion, what kind of impact can it have on the eur/usd (i have read somewhere that eur/usd volume is around $800 bilion daily)?
Reply
WARREN MOSLER Reply:
January 24th, 2011 at 9:45 pm
that would be an annual swing of 50 billion which isn’t nothing, and what percent of daily volume it is isn’t the issue. two entirely different things
Reply
January 24th, 2011 at 3:46 pm
Yet all these “emerging fundamentals” are entirely dependent upon weak-kneed, low intellect politics. For the time being, politics is the best predictor of changing Fx markets?
Are there any election-derivative betting pools? Any policy-default-swaps in Vegas?
Would one campaign-finance-reform butterfly flapping even one wing cause a Tsunami in all mkts?
Find out where the butterflies breed & do whatever you can to preserve their nesting grounds. They’re under threat by you know whom.
Reply
Tom Hickey Reply:
January 24th, 2011 at 7:42 pm
A lot hangs on the cb’s and monetary authorities since the GFC began. Look what happened to the euro, first, when it looked like the periphery was going down, and then when the authorities stepped in. Hard to gauge “fundamentals” in this environment. A lot of people got burned looking at markets as markets and not realizing the power of governments and their willingness to wield that power in extremis.
Reply
February 13th, 2011 at 6:06 pm
what is brent and wti?
Reply