Sweden cuts interest rates to below zero. The rest of Scandinavia looks about. Deflation looms. Ukraine fights. Greece revolts. France and Belgium are coming to terms with terrorist attacks. Obama asks for permission to widen the war in the Middle East. Russian billionaires spill into Switzerland forcing a de-peg from the euro. Russia herself writhes economic in crisis. China continues to slow. International shipping slows too.
Ghosts? We don’t believe in ghosts. But history and lessons learned or not learned is another issue.
(From The Telegraph)
Stephen Lewis from Monument Securities says the emergency actions are getting out of hand: “The chief threat from a global currency war is that it will lead central banks to take up monetary stances so extreme that they damage the smooth functioning of financial markets. It is remarkable that they should be closing their minds to the possibility that they are undermining the basic motive to save and invest as they blindly wage their currency wars.”