While Syria and Ukraine have the world worried about war, a much cooler war continues across the world. This is the one fought not with bullets or missiles, but instead with big wads of cash. The currency war that has swept the globe since 2008 is continuing on many fronts, as we have discussed before.
It’s time for an update. Who is winning the currency war? Right now, the answer appears to be Japan, but China has more than a few tricks it is working on. Europe remains a big loser and the US is pretty much holding even.
The best way to destroy the capitalist system is to debauch the currency.
– Vladimir Lenin
Barataria was a bit skeptical about Japan’s “Abenomics” back in January. The first results are in, and they are amazing. Their economy grew by a developed-world-leading 3.5% in the first quarter, and the stock market is up 28% in 2013. It’s been called a “wealth shock”, and it’s very welcome in a nation that has been flat for two decades. What could possibly go wrong? Just about everything – and it’s likely to affect us here in the US. Ready for really cheap electronic gadgets? How about stagnating employment?
There is an awful lot going on in the world right now. It’s hard to find any one thing that is worth writing about, given all of the news. So let’s run down everything all at once.