636. Currency War III continues

Today the ECB tweaked some of their rules that gave an appearance of making loans easier to obtain by broadening collateral requirements. Thus, by offering ways for banks to expand their loans. This resulted in positive news toward increased spending and was rewarded with stronger Euro. This in turn lowered the dollar and made our exports look even better. Now, the future news re the ECB lowering rates by 1/2% in July meeting will be their way to strengthen their export prices and manufacturers/producers. This should lower the Euro (more supply=lower price) and increase the dollar. Not what America wants with its high unemployment and stagnant economy. thus, as already noted in previous posts, Helicopter Ben will take his pennies up in helicopters and drop them across the country to lower the dollar, which will subsequently raise the Euro and move things back the other way. The net effect of currency wars that can last decades is net zero. It only cause volatility; and opportunities for investors who trade short-term. Fasten your seat belts -- the coster is nearing the first and steepest dropping peak. Of course the timing of the drop is planned for after the elections. Ben needs to keep his job and will make the climb as high as possible though.