Currency Wars: Part II - Bushfire Battles Blazing

By: Gordon Long | Thu, Feb 28, 2013
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Link to Part I here: The Belligerents - 20 Minutes, 25 Slides


 

Bushfire Battles Blazing

38 Countries involved in Currency wars

Bushfire battles are igniting everywhere around the globe. The underlying problem of liquidity pumping by the developed economies is is increasingly causing widening distortions in the following hotspots:


Following the Argentina Road Map

The developed world is clearly following the well trodden Argentinian Road Map. Whether intentional or simply the natural consequence of unsound money, the unfolding similarities are eerie.

  1. Nationalized Private Pensions, plundering the retirement savings of her people.
  2. Increased Tax Rates across the board-- income, VAT, import duties, etc. as well as imposed a new wealth tax.
  3. Inflated Argentina's Money Supply, printing currency with wanton abandon; M2 money supply has increased 215% in the past three years.
  4. Currency Devaluation - Driven the value and purchasing power of the currency down by 50%. Street-level inflation is now 30%+ per year.
  5. Economic Reporting - Made a mockery of official statistics, comically understating the level of Argentine inflation and unemployment. She even began punishing economists for publishing private estimates of inflation that didn't jive with the government figures.
  6. Nationalization - Taken over control of one industry after another, most notably the nationalization of Spanish oil firm YPF's Argentine assets.
  7. Imposed Export Controls of agriculture products from beef to grains, forcing growers to sell at artificially lower domestic prices.
  8. Imposed Capital Controls, reducing her citizens' capability to dump their poorly performing currency and hold gold, dollars, Euros, or anything else.
  9. Price Controls - Imposed a two month 'price freeze' on items in the supermarket, and encouraged retail consumers to rat out any grocer that doesn't abide by the government order.
  10. Media Controls - Imposed controls over the media, most recently ordered an advertising ban in Argentine newspapers (weakening their financial position).

Currency Wars Lead to Capital Controls which leads to Export Controls, which leads to Price Controls, which leads to Media Controls, which leads to.... more AUTHORITARIAN CENTRAL STATE CONTROLS.

Currency wars chart


22 Minutes, 32 Slides

 


 

Gordon Long

Author: Gordon Long

Gordon T. Long
Publisher - LONGWave

Gordon T. Long

Gordon T. Long has been publically offering his financial and economic writing since 2010, following a career internationally in technology, senior management & investment finance. He brings a unique perspective to macroeconomic analysis because of his broad background, which is not typically found or available to the public.

Mr. Long was a senior group executive with IBM and Motorola for over 20 years. Earlier in his career he was involved in Sales, Marketing & Service of computing and network communications solutions across an extensive array of industries. He subsequently held senior positions, which included: VP & General Manager, Four Phase (Canada); Vice President Operations, Motorola (MISL - Canada); Vice President Engineering & Officer, Motorola (Codex - USA).

After a career with Fortune 500 corporations, he became a senior officer of Cambex, a highly successful high tech start-up and public company (Nasdaq: CBEX), where he spearheaded global expansion as Executive VP & General Manager.

In 1995, he founded the LCM Groupe in Paris, France to specialize in the rapidly emerging Internet Venture Capital and Private Equity industry. A focus in the technology research field of Chaos Theory and Mandelbrot Generators lead in the early 2000's to the development of advanced Technical Analysis and Market Analytics platforms. The LCM Groupe is a recognized source for the most advanced technical analysis techniques employed in market trading pattern recognition.

Mr. Long presently resides in Boston, Massachusetts, continuing the expansion of the LCM Groupe's International Private Equity opportunities in addition to their core financial market trading platforms expertise. GordonTLong.com is a wholly owned operating unit of the LCM Groupe.

Gordon T. Long is a graduate Engineer, University of Waterloo (Canada) in Thermodynamics-Fluid Mechanics (Aerodynamics). On graduation from an intensive 5 year specialized Co-operative Engineering program he pursued graduate business studies at the prestigious Ivy Business School, University of Western Ontario (Canada) on a Northern & Central Gas Corporation Scholarship. He was subsequently selected to attend advanced one year training with the IBM Corporation in New York prior to starting his career with IBM.

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