120524 Daily Money Printing Watch- Beware Holders of JPY, EUR

(quoted or paraphrased from seekingalpha.com’s Market Currents )

says JPMorgan: “Pencil in” another LTRO announcement at ECB’s July meeting – predicts a 25 basis point rate cut for September. The bank cites today’s PMI reads as the final straw to stir the ECB to action (then why wait until September?). Something is clearly up in the currency markets, where the euro has spiked higher vs. the dollar and, more interestingly, against the Swiss franc

 

Commerzbank’s chief economist -Expect the ECB to respond to Greece by holding another LTRO, -expects the bank to take its time about announcing such. “The growing uncertainty is poison for the economy,” he says. He predicts a cheaper euro, not because of a run, but because the ECB will have the loosest monetary policy

 

BOJ governor Shirakawa says the bank is committed to easing, but won’t do so solely to weaken the yen. Shirakawa adds the “biggest factor affecting currency moves now is investors’ risk aversion,” and there’s no evidence that an expanded monetary base will weaken the currency. Currently: USD -0.13% to ¥79.36

 

Money printing will devalue most major currencies and wealth of those with assets in them. Protect yourself: Advice from our own Chief Analyst:

 

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