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IPFS News Link • Currencies

The G20 Basically Gave The Green-Light For Massive Yen Devaluation

• Business Insider
  We will refrain from competitive devaluation.

- We will not target our exchange rates for competitive purposes.

That sounds pretty impressive, right? No mincing words on the issue of the day.

Well, you have to consider who is doing the talking. Follows is the list of G-20 countries. In my book, Canada and Australia have done a pretty good job of not manipulating their currencies (and they’ve paid a price). The other 18 players at this table are all messing with their currencies. They are doing it with either a) direct FX market intervention or b) through the backdoor, via QE in the domestic bond markets. The finance ministers all signed the communiqué with their fingers crossed behind their backs.