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No taper brings back talk of currency war

Posted By admin On September 19, 2013 @ 9:42 am In Money Watch | Comments Disabled

Katie Holliday
CNBC [1]
September 19, 2013

The Federal Reserve’s shocking decision not to taper, despite broad expectations for a $10-20 billion reduction of its monthly asset purchases, has reignited talk of a global currency war.

Risk-on currencies like the Australian dollar, the euro and the British pound soared in response, while the greenback dropped across the board. Now some analysts say the Fed’s decision could prompt other central banks to devalue their currencies in an attempt to retain a competitive edge.

“We are on the verge [of a currency war]… especially if the Fed does not taper in October or December…” said Boris Schlossberg, MD of BK Asset Management.

The other G10 countries will have to react and the only thing they can do is provide “even more accommodative policies in order to try and equalize all these currency differentials,” he added.

Full story here. [1]

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URLs in this post:

[1] CNBC: http://www.cnbc.com/id/101045968

[2] CREDIT SUISSE: It’ll Take Missile Strikes On Syria During The FOMC Meeting For The Fed To Delay The Taper: http://www.prisonplanet.com/credit-suisse-itll-take-missile-strikes-on-syria-during-the-fomc-meeting-for-the-fed-to-delay-the-taper.html

[3] Currency Wars – Russia Officially Adds 19.5 Tonnes of Gold Reserves in October Alone: http://www.prisonplanet.com/currency-wars-russia-officially-adds-19-5-tonnes-of-gold-reserves-in-october-alone.html

[4] IT’S OFFICIAL: It’s Been Announced That ‘Currency Wars’ Are Back On: http://www.prisonplanet.com/its-official-its-been-announced-that-currency-wars-are-back-on.html

[5] Euro Breakup Talk Increases as Germany Loses Its Currency Proxy: http://www.prisonplanet.com/euro-breakup-talk-increases-as-germany-loses-its-currency-proxy.html

[6] Shocking New IMF Report: The U.S. Dollar Needs To Be Replaced As The World Reserve Currency And SDRs “Could Constitute An Embryo Of Global Currency”: http://www.prisonplanet.com/shocking-new-imf-report-the-u-s-dollar-needs-to-be-replaced-as-the-world-reserve-currency-and-sdrs-could-constitute-an-embryo-of-global-currency.html

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