As mainland China’s markets opened again overnight after a week-long closure die to the Lunar New Year holiday, monetary regulators revalued the yuan higher dramatically to catch up with off-shore markets in Shanghai.
US equity futures soared on strong dollar moves as a result, however the markets are closed today for President’s Day, so it’s all for naught.
We are — as Jim Rickards has said — in the midst of a currency war where winners and losers are temporary until the next move.
As my colleague Jon Trugman pointed out this week in his NY Post business column, where in the world is Treasury Secretary Jack Lew to defend the dollar?
The Obama administration is using Janet Yellen as its point person on monetary policy, but she neither has the tools or the mandate to defend the dollar against other currencies.
If I didn’t know any better, I swear the White House has a deliberate policy of debasing the dollar. Both Lew and ex-Treasury chief Tim Geithner have been invisible on the world stage when it comes to US currency policy. We are now in the era of central bankers dictating fiscal and monetary policies, which is the reason why we are experiencing prolonged economic stagnation.