moki
el Presidente
- Joined
- Dec 16, 2003
- Messages
- 9,415
Canadian dollar down 5.6 pct so far this week -- The currency is down 5.6 percent so far this week, well on its way to surpass its biggest weekly loss since at least 1970, hit just last week when it took a 4.5 percent nose-dive. Thomson Reuters data for weekly percentage changes in the currency begins in 1970.
With the United States flirting with recession and the global economy veering downward, the prospects for Canada's economic growth are fading and the currency has been paying the price.
The United States buys three-quarters of Canada's exports. Around half of Canadian exports are commodities, the prices of which are falling along with demand as global economies shrink.
Iceland: dancing on the brink of bankruptcy -- For years, Iceland had enjoyed an economic climate more favourable than its weather. But the country was leaving itself bitterly exposed, reports Michael Savage in Reykjavik
Financial Crisis: Who is going to bail out the euro? -- Those such as German finance minister Peer Steinbruck – who thought the sub‑prime crisis was just an "American problem" – have had a rude shock. The collapse of Hypo Real with €400 billion of liabilities has made him face the unsettling truth that German banks have played a big part in this $10 trillion speculative venture undertaken by the whole global banking industry.
This is a very dangerous set of circumstances for monetary union. Will we still have a 15-member euro by Christmas?
The financial crisis could be the euro's death knell ... and even end the shambolic EU -- Those countries most passionate about creating a 'United States of Europe' established the euro ten years ago as the supreme symbol of their desire to weld Europe together in full 'economic and monetary union'.
As we face a crisis as serious as most of us have seen in our lifetimes, it might not be just the euro which falls apart, but that entire over-ambitious experiment in supranational government which the EU represents.
Our banks might be tottering, but it might eventually be the EU itself which falls.
Germany takes hot seat as Europe falls into the abyss -- The lesson of the 1930s is that any country trying to reflate in isolation will be punished. The crisis will ricochet from one economy to another until every one is crippled. We are seeing it play again in this drama as our leaders fail to rise above their narrow, parochial agendas.
“We have to make sure Europe takes its responsibilities, like the US: action must be taken quickly and in a concerted manner,” said IMF chief Dominique Strauss-Kahn.
But the risk of a dollar collapse is one for the distant future. Right now the world faces the opposite problem. There is a wild scramble for dollars as a $10 trillion pyramid of global lending based on dollar balance sheets “delevers” with a vengeance.
This is a “short squeeze” on those who have used the dollar for a vast global carry trade. International banks are facing margin calls on their dollar leverage. It is why the Fed is having to provide $1.25 trillion in dollar liquidity for the entire global system, according to estimates by Brad Setser from the Center for Geoeconomic Studies.
The crisis engulfing Europe, Asia and emerging markets, makes life easier for Washington. The United States is becoming a safe-haven again.
The Fed can now hope to pursue monetary stimulus “a l’outrance” without being slapped down by the currency, debt, and commodity markets. Take comfort where you can.
With the United States flirting with recession and the global economy veering downward, the prospects for Canada's economic growth are fading and the currency has been paying the price.
The United States buys three-quarters of Canada's exports. Around half of Canadian exports are commodities, the prices of which are falling along with demand as global economies shrink.
Iceland: dancing on the brink of bankruptcy -- For years, Iceland had enjoyed an economic climate more favourable than its weather. But the country was leaving itself bitterly exposed, reports Michael Savage in Reykjavik
Financial Crisis: Who is going to bail out the euro? -- Those such as German finance minister Peer Steinbruck – who thought the sub‑prime crisis was just an "American problem" – have had a rude shock. The collapse of Hypo Real with €400 billion of liabilities has made him face the unsettling truth that German banks have played a big part in this $10 trillion speculative venture undertaken by the whole global banking industry.
This is a very dangerous set of circumstances for monetary union. Will we still have a 15-member euro by Christmas?
The financial crisis could be the euro's death knell ... and even end the shambolic EU -- Those countries most passionate about creating a 'United States of Europe' established the euro ten years ago as the supreme symbol of their desire to weld Europe together in full 'economic and monetary union'.
As we face a crisis as serious as most of us have seen in our lifetimes, it might not be just the euro which falls apart, but that entire over-ambitious experiment in supranational government which the EU represents.
Our banks might be tottering, but it might eventually be the EU itself which falls.
Germany takes hot seat as Europe falls into the abyss -- The lesson of the 1930s is that any country trying to reflate in isolation will be punished. The crisis will ricochet from one economy to another until every one is crippled. We are seeing it play again in this drama as our leaders fail to rise above their narrow, parochial agendas.
“We have to make sure Europe takes its responsibilities, like the US: action must be taken quickly and in a concerted manner,” said IMF chief Dominique Strauss-Kahn.
But the risk of a dollar collapse is one for the distant future. Right now the world faces the opposite problem. There is a wild scramble for dollars as a $10 trillion pyramid of global lending based on dollar balance sheets “delevers” with a vengeance.
This is a “short squeeze” on those who have used the dollar for a vast global carry trade. International banks are facing margin calls on their dollar leverage. It is why the Fed is having to provide $1.25 trillion in dollar liquidity for the entire global system, according to estimates by Brad Setser from the Center for Geoeconomic Studies.
The crisis engulfing Europe, Asia and emerging markets, makes life easier for Washington. The United States is becoming a safe-haven again.
The Fed can now hope to pursue monetary stimulus “a l’outrance” without being slapped down by the currency, debt, and commodity markets. Take comfort where you can.
