Anyone remember the particularly stupid ‘currency war’ meme doing the rounds of the ‘we are all doomed’ headless chooks not too long ago?
Where it was every country for itself as each cut rates and did other dastardly deeds to ‘manipulate’ the value of its own currency lower? (Note, the propagators of this bottom-of-the-barrel stupid meme found a way to ignore interest rate hikes in India, China, Australia, Canada … and so on … but, hey, that’s what being stoopid is all about).
Well, its been a good few days now since the G7 intervention in the Yen, where G7 countries intervened in a co-ordinated effort to weaken the Yen (& therefore the EUR, USD, CAD, GBP (amongst other, non-G7 currencies) all strengthened against the Yen). How does this fit with the ‘currency war’ uber-stupid meme?
Oh, thats right, it doesn’t.
No wonder the headless chooks have been quiet.
My previous rants on the ‘currency war’ :