About Currency Currents

With Currency Currents, you can stay tuned-in to our current global-macro view and our analysis of key investment themes driving currency prices.

We consistently focus on the key asset classes responsible for the flow of global capital -- including equities, fixed income, commodities and, of course, currencies.

Nothing is off limits to us in this free-wheeling look at the markets. Some days you’ll receive ramblings on trading psychology, while other days we may take an academic approach in explaining esoteric economic issues. Ultimately we have one goal in mind: to help you get a handle on the key investment themes driving global capital flow. Because if you know where the money is going, it increases the probability that your position in the market will be a profitable one.

Who is Jack the Pipper?

Jack Crooks is Black Swan Capital LLC, President and Chief Trading Officer.

Jack is founder and president of Black Swan Capital LLC. He has also operated a discretionary money management firm specializing in global stock, bond, and currency asset management for retail clients. In addition, he was general partner in a firm specializing in currency futures and commodities trading. Neither firm is now in operation.

Prior to entering the investment arena, Jack worked in various corporate finance positions. He has written extensively on the subject of global currencies and international economics.

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G-20 bust in the making?

Posted 12:16 27 March 2009

Key News

Growth in spending by American consumers slowed in February and incomes fell more than forecast, reflecting the toll of a deteriorating job market. (Bloomberg)

Quotable

"Been in this game one-hundred years, but I see new ways to lose 'em I never knew existed before."

Casey Stengel

FX Trading - G-20 bust in the making?
Does today's price action foreshadow things to come after the G-20 meeting? Or is it another chance to sell the dollar again at a higher price?

Right now, we are going with the former because we think the G-20 will be a total bust. And given the penchant for all governments of late to crackdown on entrepreneurship and penalize the competent to carry the rest of the pack, anything that flows from the G-20 seems highly unlikely to get economies moving again.

Our "esteemed" Treasury Secretary still seems to believe he can lead a horse to water and make him drink. Pampered elites definitely see the world as they want it, and often confuse their wants with the way it really is. Mr. Geithner thinks if everyone were to lend and borrow again that all will be good--global demand will be restored. The loving symbiotic relationship between the US and China will be back on track--the one that has them sending us crates of stuff, and us sending them crates of dollars in the shipping containers otherwise empty on the way back to Asia.

Was he not paying attention when Japan pushed rates to zero and stimulated out the yin-yang during its lost years? Japanese consumers didn't borrow and the banks didn't lend much even with zero interest rates and infrastructure projects creating bridges to nowhere. Japanese consumers and institutions were busy repairing their balance sheets; that was their priority. It is no different now for US consumers after losing an estimated $12-$15 trillion in wealth over the past couple of years.

Knock-knock: is there a brain-cell home among the core of President Obama's elite economic advisors?

We think G-20 is a bust. And today's price action a precursor of things to come as dollar perma bears realize that risk aversion may just last a lot longer than they think.