The paradox in the question of who wins in a currency war presupposes that any participating combatant can actually claim victory. If winning means ending up with the most cash, when the value of the money as a store of tangible wealth is debased, it is doubtful anyone can be declared the victor. The absurdity of lowering the purchasing power of a countries currency to enable exports to be more competitive is economic sacrilege that the heretical “Free Trade” mythos is based upon. Without a reliable standard of objective comparison, floating currencies maneuver their exchange rates to disguise internal imbalances in their own political and economic expenditures.
With the approval vote in the United Nation Security Council of the P5 + 1 Iranian agreement, a smorgasbord of eager trading partners claw themselves out of the woodwork. The liquid black gold rush is on. With the rescinding of sanctions put into motion, over time the wheels of commerce will be put back on track. No matter what the U.S. Congress does, the flood from international trade will start making deals with Iran.
The lethargic performance of the U.S. economy going back decades and plunging into an embedded depression, since the financial meltdown of 2007, has caused permanent damage. The business community and the financial press have yet to acknowledge that prospects are not going to improve. It does not take a commercial genius or an academic professor to look around at the shrinking middle class and conclude that the lessons of the preverbal business cycle no longer apply. In order for any economy to prosper, the fruits of commerce must improve the financial conditions of the producing contributors.
The quandary of the economic dilemma continues. A globe suffering from a deflationary financial impact, while consumer prices rise well above the reported cost of living increases, does not bode well that prospects of commercial growth can rescue the world economy. What changes can overcome this predicament? Well, some academic scholar’s offers serious concern that a long term rebound towards prosperity is no longer possible.
The working poor suffer disproportionately from the offshoring of high paying jobs. The upsurge an hour in the minimum wage economy is the net result of a consorted effort to lower the standard of living of not just the struggling impoverished but for all scrambling households. When the communist manifesto advocated a progressive income tax, the proletariat was supposed to get a sliver of social justice. Just how well did that hogwash turn out?
Remember the stagflation years? Maybe the current world economic environment is just in an enduring lethargy awaiting the bottom to fall out. Seldom has flat performance lingered as long as it has. Meaningful expansion, under a zero interest rate strategy has failed. Even much lower oil prices have not jump-started the engine of growth. Prospects for an upturn and a return to producing constructive activity still seem to be years away. Or is this a permanent outlook that baffles business executives and frustrates creative entrepreneurs. For the rest of us, waiting and hoping for a viable economy has become wishful thinking at best.
The announcement that Federal government’s tax-take hits all-time high as the federal government collected a record amount of taxes in fiscal year 2014, topping $3 trillion in revenue for the first time in its history, has the tax man taking a bigger bite than ever. Yet, the take that the collection bureau seems un-phased from all their scandals to put the taxpayer through their third degree audits are easing up. Why? The answer may surprise when the ledger is tallied up.
With the media account that Upstate NY towns explore seceding to Pennsylvania over taxes, hydrofracking, the stage is set for a clash of constitutional power politics.
The Global Warming establishment is NOT a business. All the tentacles that suck up public money to finance crony collectivism are based upon government subsidies and artificially higher consumer prices. The absurd lunacy that economic growth and productive jobs can be created with the underlying premise of the “so called” industrial model is based upon lies, deceit and cooked data; clearly demonstrates the disingenuous nature of the zealots that benefit from the fraud.
In the ridiculous charade that passes for the foreign exchange currency markets, the ease upon which a 39% spike in the Swiss Franc to the EU has most financial journalist puzzled. A flagship of establishment journalism like the Washington Post provides a quaint explanation in Why Switzerland’s currency is going historically crazy. The Swiss intend to keep their exchange rate at 1.2 Swiss francs per euro caused unsustainable negative competiveness in Swiss exports to EU customers. How many times have you heard that same old song? Corporatist media consistently spins a yarn that suppressing one’s own currency is good for business.
The SWIFT System is an integral part of a communication process that assists payment and clearing of financial transactions. The Corporate-to-Bank site defines it in the following manner and provides several examples of Payment, Clearing and Settlement Systems.
The alarm warnings are going off in Europe. International markets under pressure, global tensions rising and the financial system stressed to the point of breaking. Europe is ready for a relapse. It may be a very cold winter without Russian gas. Yet the technocrats in Brussels just go on their merry way in dictating the future to the vastly different societies and economies that make up the EU block. The Guardian expands this theme in the article, The eurozone crisis – history is repeating itself … again.