Friday, January 25, 2013

Black Swan Capital ~ Currency Wars declared (again?)

 BSC Signature 

Funny how institutional memory among our financial elite seems to get fuzzy when their own objectives blur reality; I am speaking of currency manipulation past. Grey hairs or students of the currency market (guilty of both I am), and a good friend of mine who was there, in the White House at the time, remember. It was called the Plaza Accord. [Carried out by the G-5: France, US, West Germany, Japan and the UK agreed to push down the value of the dollar by intervening in currency markets.]

My friend summarized it this way to me: "Jimmy [Jim Baker who had switched places with Donald Regan to go from Chief of Staff to Treasury Secretary in 1985] just got these guys together and did it. Those of us in the White House, and even RR [Ronald Reagan], really weren't involved much at all."

The stated objective of the Plaza Accord...


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