http://www.forexconspiracyreport.com/next-forex-conspiracy/ Next Forex Conspiracy Nations pursue monetary policies that benefit their own economies. Sometimes these monetary policies are clean and sometimes like today they amount to conspiracies to win the competitive devaluation contest. Is this the next Forex conspiracy? The global economy is weak and nations are using currency exchange rates as the next Forex conspiracy. Reuters reports the story. The massive monetary stimulus programs deployed by advanced economies are producing fierce foreign exchange swings and fueling talk of a currency war. The euro hit a 12-year low below $1.05 against the dollar at the start of last week only to jump back to $1.10 on Wednesday – its biggest one-day rise in six years – after the Fed signaled it was in no hurry to raise rates after all. The Chinese yuan reversed a long declining trend to post its strongest weekly rise against the dollar since 2007 due to a rush of dollar sales by major state-owned banks. Bank of Japan Governor Haruhiko Kuroda dismissed talk of competitive devaluations to spur economic growth, saying on Friday that the Fed, the BOJ and the European Central Bank had all printed money “to achieve their price stability targets, not to depreciate their currencies.” Currency war or not, as long as foreign exchange movements remain so sharp, crucially determining the outlook for growth and inflation, currencies will remain uppermost in policymakers’ minds. The basic of these competitive currency devaluations is to improve a nation’s economy. Each nation prints money to stimulate the economy, create jobs and decrease the value of the nation’s currency. A weaker currency makes their exports cheaper and more competitive in global markets. The concern generally voiced about this next Forex conspiracy is that it will lead to global deflation. Deflation Investopedia defines deflation: A general decline in prices, often caused by a reduction in the supply of money or credit. Deflation can be caused also by a decrease in government, personal or investment spending. The opposite of inflation, deflation has the side effect of increased unemployment since there is a lower level of demand in the economy, which can lead to an economic depression. Central banks attempt to stop severe deflation, along with severe inflation, in an attempt to keep the excessive drop in prices to a minimum. The concern with deflation is that it leads to a downward spiral of lower profits, closing factories, lower incomes and fewer jobs. Homeowners find that the cost of their mortgages become too great as the cost of money rises. Fed Response to the Next Forex Conspiracy The US Federal Reserve may have started things going with its quantitative easing program that brought the USA out of the recession. Europe followed the austerity route and is threatened again with recession.

1. Next Forex Conspiracy
By www.ForexConspiracyReport.com

2. http://www.forexconspiracyreport.com/next-forex-conspiracy/
Nations pursue monetary policies that
benefit their own economies.

3. http://www.forexconspiracyreport.com/next-forex-conspiracy/
Sometimes these monetary policies
are clean and sometimes like today
they amount to conspiracies to win
the competitive devaluation contest.

4. http://www.forexconspiracyreport.com/next-forex-conspiracy/
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5. http://www.forexconspiracyreport.com/next-forex-conspiracy/
Is this the next Forex conspiracy?
The global economy is weak and
nations are using currency exchange
rates as the next Forex
conspiracy. Reuters reports the story.

6. http://www.forexconspiracyreport.com/next-forex-conspiracy/
The massive monetary stimulus
programs deployed by advanced
economies are producing fierce
foreign exchange swings and fueling
talk of a currency war.

7. http://www.forexconspiracyreport.com/next-forex-conspiracy/
The euro hit a 12-year low below
$1.05 against the dollar at the start
of last week only to jump back to
$1.10 on Wednesday – its biggest
one-day rise in six years – after the
Fed signaled it was in no hurry to
raise rates after all.

8. http://www.forexconspiracyreport.com/next-forex-conspiracy/
The Chinese yuan reversed a long
declining trend to post its strongest
weekly rise against the dollar since
2007 due to a rush of dollar sales by
major state-owned banks.

9. http://www.forexconspiracyreport.com/next-forex-conspiracy/
Bank of Japan Governor Haruhiko
Kuroda dismissed talk of competitive
devaluations to spur economic
growth

10. http://www.forexconspiracyreport.com/next-forex-conspiracy/
Saying on Friday that the Fed, the
BOJ and the European Central Bank
had all printed money “to achieve
their price stability targets, not to
depreciate their currencies.”

11. http://www.forexconspiracyreport.com/next-forex-conspiracy/
Currency war or not, as long as
foreign exchange movements remain
so sharp, crucially determining the
outlook for growth and inflation,
currencies will remain uppermost in
policymakers’ minds.

12. http://www.forexconspiracyreport.com/next-forex-conspiracy/
The basic of these competitive
currency devaluations is to improve a
nation’s economy.

13. http://www.forexconspiracyreport.com/next-forex-conspiracy/
Each nation prints money to stimulate
the economy, create jobs and decrease
the value of the nation’s currency.

14. http://www.forexconspiracyreport.com/next-forex-conspiracy/
A weaker currency makes their
exports cheaper and more competitive
in global markets.

15. http://www.forexconspiracyreport.com/next-forex-conspiracy/
The concern generally voiced about
this next Forex conspiracy is that it
will lead to global deflation.

16. http://www.forexconspiracyreport.com/next-forex-conspiracy/
Deflation

17. http://www.forexconspiracyreport.com/next-forex-conspiracy/
Investopedia defines deflation:

18. http://www.forexconspiracyreport.com/next-forex-conspiracy/
A general decline in prices, often
caused by a reduction in the supply of
money or credit.

19. http://www.forexconspiracyreport.com/next-forex-conspiracy/
Deflation can be caused also by a
decrease in government, personal or
investment spending.

20. http://www.forexconspiracyreport.com/next-forex-conspiracy/
The opposite of inflation, deflation
has the side effect of increased
unemployment since there is a lower
level of demand in the economy,
which can lead to an economic
depression.

21. http://www.forexconspiracyreport.com/next-forex-conspiracy/
Central banks attempt to stop severe
deflation, along with severe inflation,
in an attempt to keep the excessive
drop in prices to a minimum.

22. http://www.forexconspiracyreport.com/next-forex-conspiracy/
The concern with deflation is that it
leads to a downward spiral of lower
profits, closing factories, lower
incomes and fewer jobs.

23. http://www.forexconspiracyreport.com/next-forex-conspiracy/
Homeowners find that the cost of
their mortgages become too great as
the cost of money rises.

24. http://www.forexconspiracyreport.com/next-forex-conspiracy/
Fed Response to the Next
Forex Conspiracy

25. http://www.forexconspiracyreport.com/next-forex-conspiracy/
The US Federal Reserve may have
started things going with its
quantitative easing program that
brought the USA out of the recession.

26. http://www.forexconspiracyreport.com/next-forex-conspiracy/
Europe followed the austerity route
and is threatened again with
recession.

27. http://www.forexconspiracyreport.com/next-forex-conspiracy/
Thus the European Central Bank is
now looking to use their own
quantitative easing program to rescue
the EU economy.

28. http://www.forexconspiracyreport.com/next-forex-conspiracy/
The Fed has been waiting to raise
interest rates.

29. http://www.forexconspiracyreport.com/next-forex-conspiracy/
Now, according to the Wall Street
Journal, the Fed will wait until
September to avoid raising the price
of the dollar any more against other
major currencies that are being driven
downward by the next Forex
conspiracy.

30. http://www.forexconspiracyreport.com/next-forex-conspiracy/
The Federal Reserve will likely start
raising short-term interest rates in
September, according to most private
economists polled in recent days by
The Wall Street Journal

31. http://www.forexconspiracyreport.com/next-forex-conspiracy/
A significant shift away from earlier
predictions of liftoff in June.

32. http://www.forexconspiracyreport.com/next-forex-conspiracy/
Some 65% of the economists in the
latest survey expected a September
rate increase, while just 18% saw the
first move coming in June.

33. http://www.forexconspiracyreport.com/next-forex-conspiracy/
Just a month earlier, economists
were more evenly split, with 48%
predicting a first rate rise in June
while 38% expected it in September.

34. http://www.forexconspiracyreport.com/next-forex-conspiracy/
The latest survey was conducted
Friday through Tuesday; 60 analysts
offered predictions for the timing of
the central bank’s initial rate
increase.

35. http://www.forexconspiracyreport.com/next-forex-conspiracy/
In the meantime Forex traders will
cope with the next Forex conspiracy
in attempting to predict the paths of
major currencies in the months
ahead.