What does it mean when a "country intervenes in the currency market"? - page 2.

sidhujag

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Quote from: redHeadBlunder on October 09, 2014, 01:08:42 AM

Quote from: sidhujag on October 09, 2014, 12:13:06 AM

Quote from: redHeadBlunder on October 08, 2014, 11:57:42 PM

Quote from: sidhujag on October 08, 2014, 01:44:33 PM

Intervention always ends up hurting more than it helps... it fakes demand similar to QE and all other forms of manipulation... it will come back to bite. If it moved up too far or down too far.. tough loss your decision to sign plaza accord creating a deflationary spiral for everyone else other than USD.

I think QE is worse then intervention. QE is determined to be long term manipulation and is very difficult and time consuming to unwind. The effects of QE will also not be immediately known.

Intervention on the other hand takes effect immediately and can easily be reversed by intervening in the other direction (or can simply cease intervening)

true... just a form of intervention obviuosly qe is worse or else us would have just done a normal intervention and used profits if any to bail ppl out etc but they needed money right away so.

Currency intervention only works when other countries are not intervening to make their currency weak as well. If that were to happen then the federal reserve would simply be selling euros to the ECB. QE will be necessary when many countries are attempting to intervene in credit markets, although it is much more complicated

No intervention is always against usd or eur.. usd and eur... Chf is the only one doing it vs eur because that is the major trade partner.. There is a currency war going on and it is a precursor to a real war(last stage)

GenieBTC

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It means they want a piece(money) of the action.

unpure

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Quote from: redHeadBlunder on October 09, 2014, 01:08:42 AM

Quote from: sidhujag on October 09, 2014, 12:13:06 AM

Quote from: redHeadBlunder on October 08, 2014, 11:57:42 PM

Quote from: sidhujag on October 08, 2014, 01:44:33 PM

Intervention always ends up hurting more than it helps... it fakes demand similar to QE and all other forms of manipulation... it will come back to bite. If it moved up too far or down too far.. tough loss your decision to sign plaza accord creating a deflationary spiral for everyone else other than USD.

I think QE is worse then intervention. QE is determined to be long term manipulation and is very difficult and time consuming to unwind. The effects of QE will also not be immediately known.

Intervention on the other hand takes effect immediately and can easily be reversed by intervening in the other direction (or can simply cease intervening)

true... just a form of intervention obviuosly qe is worse or else us would have just done a normal intervention and used profits if any to bail ppl out etc but they needed money right away so.

Currency intervention only works when other countries are not intervening to make their currency weak as well. If that were to happen then the federal reserve would simply be selling euros to the ECB. QE will be necessary when many countries are attempting to intervene in credit markets, although it is much more complicated

Normally, this would mean country who devalue their own currency first benefit the most in the short term. But smart money will leave the country will leave the country who steal from businesses who hold capital.

redHeadBlunder

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Quote from: sidhujag on October 09, 2014, 12:13:06 AM

Quote from: redHeadBlunder on October 08, 2014, 11:57:42 PM

Quote from: sidhujag on October 08, 2014, 01:44:33 PM

Intervention always ends up hurting more than it helps... it fakes demand similar to QE and all other forms of manipulation... it will come back to bite. If it moved up too far or down too far.. tough loss your decision to sign plaza accord creating a deflationary spiral for everyone else other than USD.

I think QE is worse then intervention. QE is determined to be long term manipulation and is very difficult and time consuming to unwind. The effects of QE will also not be immediately known.

Intervention on the other hand takes effect immediately and can easily be reversed by intervening in the other direction (or can simply cease intervening)

true... just a form of intervention obviuosly qe is worse or else us would have just done a normal intervention and used profits if any to bail ppl out etc but they needed money right away so.

Currency intervention only works when other countries are not intervening to make their currency weak as well. If that were to happen then the federal reserve would simply be selling euros to the ECB. QE will be necessary when many countries are attempting to intervene in credit markets, although it is much more complicated

sidhujag

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Merit: 1005

Quote from: redHeadBlunder on October 08, 2014, 11:57:42 PM

Quote from: sidhujag on October 08, 2014, 01:44:33 PM

Intervention always ends up hurting more than it helps... it fakes demand similar to QE and all other forms of manipulation... it will come back to bite. If it moved up too far or down too far.. tough loss your decision to sign plaza accord creating a deflationary spiral for everyone else other than USD.

I think QE is worse then intervention. QE is determined to be long term manipulation and is very difficult and time consuming to unwind. The effects of QE will also not be immediately known.

Intervention on the other hand takes effect immediately and can easily be reversed by intervening in the other direction (or can simply cease intervening)

true... just a form of intervention obviuosly qe is worse or else us would have just done a normal intervention and used profits if any to bail ppl out etc but they needed money right away so.

redHeadBlunder

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Quote from: sidhujag on October 08, 2014, 01:44:33 PM

Intervention always ends up hurting more than it helps... it fakes demand similar to QE and all other forms of manipulation... it will come back to bite. If it moved up too far or down too far.. tough loss your decision to sign plaza accord creating a deflationary spiral for everyone else other than USD.

I think QE is worse then intervention. QE is determined to be long term manipulation and is very difficult and time consuming to unwind. The effects of QE will also not be immediately known.

Intervention on the other hand takes effect immediately and can easily be reversed by intervening in the other direction (or can simply cease intervening)

sidhujag

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Quote from: money420weed on October 07, 2014, 11:36:32 PM

Quote from: sidhujag on October 07, 2014, 11:21:11 PM

US manipulated usdx by doing QE, BOJ manipulates jpy by selling joy.. usdjpy below 80 was breaking point look at charts and what they said. SNB said 1.2 eurchf and intervened.. the guys wife bought shitload of EUR and sold CHF prior to the big billion EUR order. Australian bank has been talking down AUD by saying its too high around 1.07.. and it fell.. and im guessing NZ central bank is doing the same... selling NZD because its a race to the bottom for exporting countries.

Central banks do let their currencies fluctuate somewhat (even china allows their currency to move up and down by a small amount every day). The issue comes when a currency moves in one direction too far, threatening the economy if intervention does not occur

Intervention always ends up hurting more than it helps... it fakes demand similar to QE and all other forms of manipulation... it will come back to bite. If it moved up too far or down too far.. tough loss your decision to sign plaza accord creating a deflationary spiral for everyone else other than USD.

DhaniBoy

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each state must have an interest in the money market, they want to maintain their currency exchange rates remain high compared with the currencies of other countries, things like this are like two sides of a coin that is not integral, ie between state intervention on the currency markets, of course eye money superpowers will be more beperan in currency markets ... hopefully superpowers can be fair to other countries, especially developing countries ..... Cool

money420weed

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Quote from: sidhujag on October 07, 2014, 11:21:11 PM

US manipulated usdx by doing QE, BOJ manipulates jpy by selling joy.. usdjpy below 80 was breaking point look at charts and what they said. SNB said 1.2 eurchf and intervened.. the guys wife bought shitload of EUR and sold CHF prior to the big billion EUR order. Australian bank has been talking down AUD by saying its too high around 1.07.. and it fell.. and im guessing NZ central bank is doing the same... selling NZD because its a race to the bottom for exporting countries.

Central banks do let their currencies fluctuate somewhat (even china allows their currency to move up and down by a small amount every day). The issue comes when a currency moves in one direction too far, threatening the economy if intervention does not occur

sidhujag

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US manipulated usdx by doing QE, BOJ manipulates jpy by selling joy.. usdjpy below 80 was breaking point look at charts and what they said. SNB said 1.2 eurchf and intervened.. the guys wife bought shitload of EUR and sold CHF prior to the big billion EUR order. Australian bank has been talking down AUD by saying its too high around 1.07.. and it fell.. and im guessing NZ central bank is doing the same... selling NZD because its a race to the bottom for exporting countries.

51percemt

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Quote from: johnyj on October 07, 2014, 11:22:05 AM

Manipulating the exchange rate of own currency is a common practice for central banks since they have large reserve of foreign currency and can print their own currency limitless

In bitcoin, same practice can be done in large exchanges, so it is important to have many exchanges or even better P2P exchanges all over the place to reduce the effect of one single exchange

Some devs of altcoins will do this in order to keep the value of their altcoin stable, at least for some period of time. Although I believe this to be extremely rare as, IMO the devs of alt coins generally only make their coins to get rich

johnyj

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Beyond Imagination

Manipulating the exchange rate of own currency is a common practice for central banks since they have large reserve of foreign currency and can print their own currency limitless

In bitcoin, same practice can be done in large exchanges, so it is important to have many exchanges or even better P2P exchanges all over the place to reduce the effect of one single exchange

botany

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Quote from: santaClause on October 05, 2014, 11:27:31 PM

Quote from: polynesia on October 05, 2014, 08:33:13 PM

Quote from: renee25 on October 05, 2014, 12:06:41 PM

it's a devaluation war, the China did it in 2000, US did it in 2008-12 by printing, japan did it last year, the ecb did it just this summer, now new Zealand, the idea is to make the respective country more cheap to boost exports and increase demand as people buy more local products as foreign products are more expensive , since they printed.

That's why bitcoin is more like gold than currency. It's not going to be devalued. it has inflation but predictable.

This is one war which no country can win. If you print more currency notes and try to devalue your currency, what stops other countries from doing the same?

Nothing. They are doing this via QE. The result is inflation, or less deflatoin

Inflation in all countries (because all countries are doing the same).
Net effect - The purchasing power of people gradually decreases, but exports don't become competitive.

santaClause

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Quote from: polynesia on October 05, 2014, 08:33:13 PM

Quote from: renee25 on October 05, 2014, 12:06:41 PM

it's a devaluation war, the China did it in 2000, US did it in 2008-12 by printing, japan did it last year, the ecb did it just this summer, now new Zealand, the idea is to make the respective country more cheap to boost exports and increase demand as people buy more local products as foreign products are more expensive , since they printed.

That's why bitcoin is more like gold than currency. It's not going to be devalued. it has inflation but predictable.

This is one war which no country can win. If you print more currency notes and try to devalue your currency, what stops other countries from doing the same?

Nothing. They are doing this via QE. The result is inflation, or less deflatoin

Whtwabbit

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Quote from: polynesia on October 05, 2014, 08:33:13 PM

Quote from: renee25 on October 05, 2014, 12:06:41 PM

it's a devaluation war, the China did it in 2000, US did it in 2008-12 by printing, japan did it last year, the ecb did it just this summer, now new Zealand, the idea is to make the respective country more cheap to boost exports and increase demand as people buy more local products as foreign products are more expensive , since they printed.

That's why bitcoin is more like gold than currency. It's not going to be devalued. it has inflation but predictable.

This is one war which no country can win. If you print more currency notes and try to devalue your currency, what stops other countries from doing the same?

Bitcoin wins

polynesia

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Quote from: renee25 on October 05, 2014, 12:06:41 PM

it's a devaluation war, the China did it in 2000, US did it in 2008-12 by printing, japan did it last year, the ecb did it just this summer, now new Zealand, the idea is to make the respective country more cheap to boost exports and increase demand as people buy more local products as foreign products are more expensive , since they printed.

That's why bitcoin is more like gold than currency. It's not going to be devalued. it has inflation but predictable.

This is one war which no country can win. If you print more currency notes and try to devalue your currency, what stops other countries from doing the same?

renee25

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it's a devaluation war, the China did it in 2000, US did it in 2008-12 by printing, japan did it last year, the ecb did it just this summer, now new Zealand, the idea is to make the respective country more cheap to boost exports and increase demand as people buy more local products as foreign products are more expensive , since they printed.

That's why bitcoin is more like gold than currency. It's not going to be devalued. it has inflation but predictable.

Meuh6879

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Quote from: Whtwabbit on September 29, 2014, 01:12:58 AM

What does it mean when a "country intervenes in the currency market"??

they sell drug money and drug car to private action... and then, inject fresh money in the system.
in Europe and USA, they print money ... more simple, fast ... and illimited.

pereira4

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It's happening right now and you can see it in countries like China. Chinese officials have recently said that they will continue a policy of intervention with regard to the nation's currency, the yuan.The comments come as pressure mounts from the US for China to free up its currency, which would allowiit to be more fairly weighted against other currencies - particularly the greenback.

hodap

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Quote from: Whtwabbit on September 29, 2014, 01:12:58 AM

What does it mean when a "country intervenes in the currency market"??

New Zealand intervened in the currency market last week and the $NZ dropped, does that mean NZ prints more money to devalue the $NZ?

Central bank can intervened the currency market by lowering the interest rate or buying up foreign currencies until the desire exchange rate.

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