Unless your money is backed by bombs and a massive military, your currency is just paper blown about by the whims of the powerful.
!WB
Argentine Peso Collapses 29% After Government Lifts Currency Controls
For those interested in a case study of what happens after a dramatic devaluation, you now have front row seats for what is likely to be a 25-30% peso plunge. Grab the popcorn.
That’s what we said on Wednesday evening in “Prepare For Peso Plunge: Argentina Lifts Currency Controls,” after the country’s FinMin Alfonso Prat-Gay announced that, as promised, new President Mauricio Macri would move to unify the official and black market exchange rates in the face of depleted FX reserves and still sky high inflation.
Here’s what the gap looked like as of yesterday:
(SCROLL DOWN)
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On Thursday, the move to a float sent the peso plunging by nearly 30%:
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Brazilian real will also fall further
The Brazilian real hit an all-time low against the U.S. dollar on Wednesday, the latest in a plague of bad news for the emerging market. And according to one currency strategist, there’s no telling when the real problems will end.
Boris Schlossberg, managing director of FX strategy at BK Asset Management, said it’s impossible to say how far Brazil’s currency will fall.
“It’s astounding, actually,” Schlossberg said Tuesday on CNBC’s “Trading Nation.” “I remember just a few years ago a steak dinner in Sao Paolo was more expensive than a steak dinner in New York. That’s how strong the real was. So it’s just been an incredible fall in the currency’s value.”
http://www.cnbc.com/2015/09/23/this-currencys-collapse-is-astounding-trader.html
Ruble has been destroyed by Obama’s war on oil. The US controls every market using HFT computers.
US gains from this war as it imports 7.5 million barrels of oil a day
http://investmentwatchblog.com/unless-your-money-is-backed-by-bombs-and-a-massive-military-your-currency-is-just-paper-blown-about-by-the-whims-of-the-powerful/