Comments on: Exchange rates in Central and Eastern Europe may spell trouble for the West http://wpolitika.wordpress.com/2009/03/02/falling-exchange-rates-in-central-and-eastern-europe-may-spell-trouble-for-the-west/ Things that in a way or another affect all of us. Mon, 07 Dec 2009 06:17:51 +0000 http://wordpress.com/ hourly 1 By: wpolitika http://wpolitika.wordpress.com/2009/03/02/falling-exchange-rates-in-central-and-eastern-europe-may-spell-trouble-for-the-west/#comment-2626 wpolitika Sat, 21 Mar 2009 10:25:16 +0000 http://wpolitika.wordpress.com/?p=186#comment-2626 That is a good explanation, and the most obvious one but I think it is missing the big picture for the simple reason that this is not just an Eastern Europe phenomenon, it is happening worldwide, from Kazakhstan to Singapore. Even if western investment funds were speculating, giving their lack of liquidity it is just way off of their power to devaluate worldwide currencies by 30%. Also at the moment, some the most unsure economies in the world are US, UK and some EU countries. Considering this, then one would expect to see the US dollar and the euro to be effected, but what is actually happening is the opposite, they are becoming stronger. So all the evidence points to one thing, there is a worldwide massive movement of euros and dollars from the rest of the world into the western economies. What I am trying to answer in this article, is why is this happening. But your story has a point as well, in all this mess of massive money movement there will be speculations and hedge funds will try to gain some profit knowing that the local currencies will devaluate. And this will actually further devaluate the currencies. Although this is just one part of the story, it is still very good that you pointed it out. Thank you. That is a good explanation, and the most obvious one but I think it is missing the big picture for the simple reason that this is not just an Eastern Europe phenomenon, it is happening worldwide, from Kazakhstan to Singapore. Even if western investment funds were speculating, giving their lack of liquidity it is just way off of their power to devaluate worldwide currencies by 30%.

Also at the moment, some the most unsure economies in the world are US, UK and some EU countries. Considering this, then one would expect to see the US dollar and the euro to be effected, but what is actually happening is the opposite, they are becoming stronger.

So all the evidence points to one thing, there is a worldwide massive movement of euros and dollars from the rest of the world into the western economies. What I am trying to answer in this article, is why is this happening.

But your story has a point as well, in all this mess of massive money movement there will be speculations and hedge funds will try to gain some profit knowing that the local currencies will devaluate. And this will actually further devaluate the currencies. Although this is just one part of the story, it is still very good that you pointed it out. Thank you.

]]> By: ghost http://wpolitika.wordpress.com/2009/03/02/falling-exchange-rates-in-central-and-eastern-europe-may-spell-trouble-for-the-west/#comment-2625 ghost Fri, 20 Mar 2009 23:05:03 +0000 http://wpolitika.wordpress.com/?p=186#comment-2625 Relax, that's not a problem for the smart people... Currency exchange rates are plummeting in Eastern Europe because of market conditions. Profits are made or lost on paper, because some are betting against eastern currencies. Just look at BRD SG, that recommends people stop betting against Romanian RON (recommends people close long positions on money markets), after the announcement Romania is close to a IMF loan. Now, analysts reconfirm investment grade ratings for Romania. Again, new profits are made, on paper. It's likely western banks and investment or hedge funds are trying to make as much profits as are humanly possible from emerging markets, to cover up their losses from non-emerging markets. That's the explanation for the central bank's joint statement on eastern currencies cross protection against attacks. I think. :P Relax, that’s not a problem for the smart people… Currency exchange rates are plummeting in Eastern Europe because of market conditions. Profits are made or lost on paper, because some are betting against eastern currencies. Just look at BRD SG, that recommends people stop betting against Romanian RON (recommends people close long positions on money markets), after the announcement Romania is close to a IMF loan. Now, analysts reconfirm investment grade ratings for Romania. Again, new profits are made, on paper. It’s likely western banks and investment or hedge funds are trying to make as much profits as are humanly possible from emerging markets, to cover up their losses from non-emerging markets. That’s the explanation for the central bank’s joint statement on eastern currencies cross protection against attacks. I think. :P

]]> By: wpolitika http://wpolitika.wordpress.com/2009/03/02/falling-exchange-rates-in-central-and-eastern-europe-may-spell-trouble-for-the-west/#comment-2613 wpolitika Mon, 02 Mar 2009 19:36:31 +0000 http://wpolitika.wordpress.com/?p=186#comment-2613 Actually...that is correct. Actually…that is correct.

]]> By: krossfire http://wpolitika.wordpress.com/2009/03/02/falling-exchange-rates-in-central-and-eastern-europe-may-spell-trouble-for-the-west/#comment-2612 krossfire Mon, 02 Mar 2009 19:32:27 +0000 http://wpolitika.wordpress.com/?p=186#comment-2612 So my idea about inventing a random currency and approving huge loans in it would work greatly until a new financial crisis will hit us due to the large sums of the invented currency being put into circulation. Bye , bye, krosspound. So my idea about inventing a random currency and approving huge loans in it would work greatly until a new financial crisis will hit us due to the large sums of the invented currency being put into circulation. Bye , bye, krosspound.

]]>