Chile Enters The Race!!!

 

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This is too much!  It’s funny. 

Chile finance minister would support central bank intervention on peso

DAVOS, Switzerland (Reuters) – Chile’s government would support any intervention by the country’s independent central bank to weaken the strong peso, Finance Minister Felipe Larrain said on Saturday.

“The central bank may decide to intervene but it is their own decision …if they do, we would certainly support them,” Larrain told Reuters in a television interview at the World Economic Forum in Davos.

“We’re trying to prevent further appreciation,” he said.

The peso, which has been boosted by Chile’s robust economic growth and healthy prices for top export copper, ranked among the strongest foreign currency performers against the U.S. dollar among 152 currencies tracked by Reuters in 2012.

Last month, central bank president Rodrigo Vergara reiterated that intervening in the local peso currency market was a tool at the bank’s disposal, but that if it hadn’t intervened so far it was because it hadn’t been deemed necessary.

The central bank deployed a dollar-purchasing program in 2011 to curb peso strength after it appreciated to its highest level in more than 2-1/2 years at 465.50 per dollar.

Larrain said it was hard to counter the weight of U.S. quantitative easing: “Against this massive QE, we have a few tools but not many.”

Well, not just the US, but, just about every other nation under the sun.  Are savings accounts a thing of the past?

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30 Responses to Chile Enters The Race!!!

  1. Latitude says:

    well great…..yea…..woopie

    ….I’m getting sick :)

  2. kim2ooo says:

    Reblogged this on Climate Ponderings and commented:
    “We’re trying to prevent further appreciation,” —– Isn’t the idea to make your money worth something?

  3. kim2ooo says:

    Processed cheeseseses -sounds stone cold idiotic, to me..

    LETS HELP: Give me your Pesos and I’ll give you some paper – There …devalued!

  4. HankH says:

    We print dollars because they buy and they buy because we print dollars. It’s a vicious cycle I tell you.

  5. Bruce says:

    Oops ‘San Francisco’. I should add that another hazard is your low flow toilet might explode.

  6. DirkH says:

    My switch to Gold and Silver ETF’s will happen in two weeks.
    Latest news:

    Fed studies scenarios of raising interest rates
    28.01.13 :
    here:
    http://www.zerohedge.com/contributed/2013-01-26/fed-defer
    thing is THEY CAN’T – it will SINK THE SHIP because the US would have to default (or the Fed would have to finance everything leading to Hyperinflation)

    BUT if ZIRP is carried on and inflation is no longer possible to hide the Fed will ALSO have to finance everything. (as noone else would buy US debt)

    So the USD will go to hell ANYWAY.

    (Remember: correlation of Gold with M2 is 0.96 !)
    (“Under my presidency the price of Gold will necessarily skyrocket”)

    The Fed is more and more caught between a rock and a hard place. There’s no way out.

    • suyts says:

      Sigh, I know, they went down this path to nowhere and thousands of people screamed don’t. When it hits the fan, these people need rounded up and prosecuted. There is time, in that everyone else seems determined to follow suit, so it doesn’t happen as quick.

      • DirkH says:

        Dunno how much time is left. Russell2000 and S&P500 already absurdly high (higher than pre BFC).

        Duck and cover over the summer!

      • suyts says:

        Absolutely! I’m already taking cover! I’ll be moved into my house by March. I think I’ll plant a big garden and build a porch with a rocking chair on it and watch it crash.

      • HankH says:

        I hate to say it but it might be what’s needed to wake people up and end the economic insanity that pervades our country.

    • Bruce says:

      Careful, Dirk, the problem is this. The markets are so skewed that you could be right but still lose out on the politics. The keyword is ‘eventually’, which might be tomorrow or be sometime next century.

      Fundamentals are fundamentals, but timing is another thing entirely. In chemistry we talk about thermodynamic vs kinetic control. We’re in the latter at the moment.

      If suppression is happening as per the presupposition of the article then the Fed and co can keep kicking their cans down the road a whole lot longer than the market may think. The eurozone situation is the worked proof of this. Can kicking is amazingly successful, which just shows we’re all stupid, since we humans just keep on being fooled by it.

      Same goes for the sharemarket, which the Fed wants to rise. Animal spirits and all that.

  7. tckev says:

    Virtual money anyone.

  8. Gene Nemetz says:

    I had some good chili on rice once.

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