John Taylor, CIO of FX Concepts, has a real doozy of an analogy.
The gist: Bernanke is to Hitler what the Currency War is to World War II.
Taylor suggests we are currently in a phony currency war similar to the phony war period prior to the real outbreak of hostilities in WWII (reminder, Germany invaded Poland, then no one did anything for a while).
In this case Bernanke is flooding the world with dollars (tanks?) and people are gearing up for war (Brazil and their “general” Guido Mantega).
Sure, this certainly makes for exciting reading but isn’t this sort of macro comment going a bit too far? As Bess Levin commented, people pay for this. You can read this sort of thing, if you want, in wide ranging corners of the internet. How does this inform trading strategy?
It concludes with the wonderfully dour statement that, while this war won’t be fought with bullets, it will be serious (emphasis ours).
This war will not be fought for territory, but for markets and wealth, and when tariff walls are raised the destruction of livelihoods and property will be almost as dramatic as in the old fashioned shooting wars. With the loss of economic value, the global debt structure must collapse and entitlement promises will not survive.
Your turn, Jerry Bruckheimer.