Raymond James Saut talks currency wars, winners and losers, and his outlook
Video here after the jump, but here is an excerpt
Yes, it's the currency cold war, and it has already gotten serious enough to garner reaction from the G-7 earlier this month and from the G-20 last week. While foreign exchange traders would say the hostilities began with the debut of the Fed's unprecedented quantitative easing policy, many observers say the battle took a turn for the worse under the direction of Japan's new Prime Minister Shinzo Abe.
"I think it's a warning shot," says Jeff Saut, chief investment strategist at Raymond James, noting the yen's 20% decline since October. "The warning shot here is the new Japanese Prime Minister's efforts to push his central bank to flood their economy with yen, and the yen has absolutely collapsed over the past six weeks."
Second, below is video from Bloomberg discussing the potential winners and losers from the 'currency wars'.
Video here after the jump, but here is an excerpt
Yes, it's the currency cold war, and it has already gotten serious enough to garner reaction from the G-7 earlier this month and from the G-20 last week. While foreign exchange traders would say the hostilities began with the debut of the Fed's unprecedented quantitative easing policy, many observers say the battle took a turn for the worse under the direction of Japan's new Prime Minister Shinzo Abe.
"I think it's a warning shot," says Jeff Saut, chief investment strategist at Raymond James, noting the yen's 20% decline since October. "The warning shot here is the new Japanese Prime Minister's efforts to push his central bank to flood their economy with yen, and the yen has absolutely collapsed over the past six weeks."
Second, below is video from Bloomberg discussing the potential winners and losers from the 'currency wars'.
I have not really addressed this but I believe the politicizing of the BOJ by Abe was a significant event and it may set the precedent for the model that other governments and central banks follow.
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