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Aug 04

Global Currency Wars Enter New Stage; Brazil Calls Off Truce, South Korea Reviews “All Possibilities”, Philippines Threatens “Prudential Limits”

By Mike “Mish” Shedlock

Fighting the Fed has reached a new stage: all out currency wars.

The Fed is desperate to tank the US dollar to stimulate exports and further fuel a stock market that is clearly back in bubble territory. However, central bankers in other countries have had enough.

Japan and Switzerland intervened heavily in the forex markets on Wednesday. Other countries, fed up with Fed policies and a weak dollar now threaten to do the same.

For a recap Wednesday’s intervention news, please see:

- Quantitative Easing Begins in Switzerland to Counteract Soaring Swiss Franc, Central Bank “Aims to Bring 3-Month LIBOR to 0%”; Gold Soars
- Japan Intervenes, Yen Plunges; What’s Next?

What’s next is already at hand: Currency Wars Enter ‘New Stage’

[more...]