Start of a Global Currency Crisis?
by Mike “Mish” Shedlock, http://globaleconomicanalysis.blogspot.com/
In Emerging Market Contagion Spreads, I presented a viewpoint that emerging market currencies have been under pressure because of falling commodity prices.
Commodity exporter currencies such as the Australian dollar, Canadian dollar, and Brazilian Real have been under pressure for the same reason.
In addition to the commodity collapse thesis, Pater Tenebrarum at the Acting Man blog throws Abenomics into the mix of possible causes of the Currency Massacre in Emerging Markets.
Both Venezuela (socialist worker’s paradise) and Argentina (nationalist socialist paradise) have a problem with their foreign exchange reserves. In both cases it stems from trying to keep up the pretense that their currencies are worth more than they really are.
Since they have maintained artificial exchange rates – coupled with capital controls, price controls and other coercive and…
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