This article was published in El Confidencial on January 26th, 2013 and in English in The Commentator

“Devaluation rarely helps the economy rarely, but it can help investors’ Matt Lynn
“This year, currency fracas could morph into global currency war”. David Petitcolin

How do we get out of a debt problem and stagnation that only worsened with stimulus?. The concerns about an all-out global currency war, triggered by Japan’s latest move, was discussed by the G-20 and in Davos as central banks become increasingly politicized and intervened. Continue reading Why currency wars fail →

This article was published in El Confidencial (courtesy @migartua)

“The erosion of central bank independence around the world threatens to unleash a round of competitive exchange rate devaluations. It is already possible to observe alarming infringements, for example in Hungary or in Japan, where the new government is massively involving itself in the affairs of the central bank, is emphatically demanding an even more aggressive monetary policy and is threatening an end to central bank autonomy,” JensWeidmann (Here)

Central banks have become the main weapon of countries to try to revive their battered economies by devaluing their currency aggressively against the rest. The world is fully immersed in the so-called currency war and the “aggressive” easing announced yesterday by the Bank of Japan is but one more episode of this strategy that has its maximum expression in the U.S. since the financial crisis of 2008. Continue reading Currency wars and Germany’s gold →

De-industrialization in Europe is slow, painful but relentless. The main reason for this remains in the excessive cost of energy that destroys competitiveness. Why does this happen when there is plenty of spare capacity, diversification of supply and renewables are supposed to reduce the impact of high oil price and gas? Continue reading The disastrous effect of subsidies in a few charts →

Front Row represents the personal view of Rodrigo Rodriguez, European Head of developed cash trading for Credit Suisse.

I know some of you might be disappointed that FR is back and that this week Back Row team will take some deserved rest, however to give credit to everyone both are always a combined effort.
Unfortunately for me I think the team made a terrific effort last week, and standard is quite high now. (All that said half of the ideas were mineJ) Continue reading Front Row: Happy Days →