Underwater Ping-Pong: Currency War Update

News From the EURO Team

It’s now becoming easier for German taxpayers and pensioners to get daily updates on how much poorer they become in order to keep the PIIGS in slop.  No matter, the rest of the team, apparently, has garnered the “full support” of Coach Trichet, who can be depended upon to ensure that the pain is fairly shared:  From those in accordance with their ability, and to all of those in accordance with their need, greed, and propensity for violence.

Meanwhile, the scheduled european bank run had a bit of technical difficulty, in Ireland anyway.  Stay tuned for whether or not the banks are open for business or whether those on the dole have enough physical energy to actually stand in line.  The tension is palpable.

News From the USA Team

The plucky “Yanks”, as always, continue to demonstrate a sophisticated understanding of the importance of timing, both in economics and comedy.  It must have something to do with our TV culture.   

Speaking of which, new monetary policy was established, appropriately enough, on 60 Minutes this weekend.   This included, naturally, Ben putting a little “English” on the ball, with strong hints of expanding QE here.  Well served Ben.

 The well-coordinated USA effort, of course, also included the “tax cut deal” between Congress and the Obamanator.   All in all, a very productive trillion dollar weekend.  Pretty neat how that amount, more-or-less, equals the magnitude of the expected next phase of bailouts by the ECB

It seems that the teams are well matched.  Well, except for those pesky sharks that keep circling the match.  The bond vigilantes and the commodity speculators are feeding well, mostly on both team’s reserve players.  Blood in the water seems to be attracting even more sharks.  More news to come, I’m sure.

Harry Tuttle

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