{"id":5588,"date":"2012-09-26T18:53:43","date_gmt":"2012-09-26T22:53:43","guid":{"rendered":"http:\/\/goldstocksforex.com\/?p=5588"},"modified":"2012-09-26T18:53:43","modified_gmt":"2012-09-26T22:53:43","slug":"fx-horizons-danish-businessman-quietly-seeks-fx-revolution-wsj-com","status":"publish","type":"post","link":"https:\/\/thepatientinvestor.com\/index.php\/2012\/09\/26\/fx-horizons-danish-businessman-quietly-seeks-fx-revolution-wsj-com\/","title":{"rendered":"FX Horizons: Danish Businessman Quietly Seeks FX Revolution &#8211; WSJ.com"},"content":{"rendered":"<p>By Michael J. Casey<\/p>\n<blockquote><p>Under [Jesper Toft&#8217;s Global Currency Union] plan, the two parties in a cross-border transaction will still do business in their home currencies but their contract will be denominated in &#8220;global currency units&#8221; whose value is determined by a unique index key based upon a weighted basket of currencies. Because of the counterbalancing and risk-spreading qualities in the currency relationships within that basket, the index key sharply lowers the prospective exchange rate volatility for the two parties to the contract. In other words, it allows firms to forget about the risk of big currency losses and focus on doing business with each other&#8230;&#8230;&#8230;<\/p><\/blockquote>\n<p>via <a href='http:\/\/online.wsj.com\/article\/SB10000872396390443328404578020183143092510.html?mod=wsj_share_tweet'>FX Horizons: Danish Businessman Quietly Seeks FX Revolution &#8211; WSJ.com<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Michael J. Casey Under [Jesper Toft&#8217;s Global Currency Union] plan, the two parties in a cross-border transaction will still do business in their home currencies but their contract will be denominated in &#8220;global currency units&#8221; whose value is determined by a unique index key based upon a weighted basket of currencies. Because of the &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/thepatientinvestor.com\/index.php\/2012\/09\/26\/fx-horizons-danish-businessman-quietly-seeks-fx-revolution-wsj-com\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;FX Horizons: Danish Businessman Quietly Seeks FX Revolution &#8211; WSJ.com&#8221;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7],"tags":[1560],"class_list":["post-5588","post","type-post","status-publish","format-standard","hentry","category-forex","tag-global-currency-union"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>FX Horizons: Danish Businessman Quietly Seeks FX Revolution - WSJ.com - the patient investor<\/title>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"FX Horizons: Danish Businessman Quietly Seeks FX Revolution - WSJ.com - the patient investor\" \/>\n<meta property=\"og:description\" content=\"By Michael J. Casey Under [Jesper Toft&#8217;s Global Currency Union] plan, the two parties in a cross-border transaction will still do business in their home currencies but their contract will be denominated in &#8220;global currency units&#8221; whose value is determined by a unique index key based upon a weighted basket of currencies. 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He co-founded Incredible Charts and writes the popular Trading Diary and Patient Investor newsletters. Using a top-down approach, Colin identifies key macro trends in the global economy before evaluating selected opportunities using a combination of fundamental and technical analysis. Focusing on interest rates and financial market liquidity as primary drivers of the economic cycle, he warned of the 2008\/2009 and 2020 bear markets well ahead of actual events. 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Casey Under [Jesper Toft&#8217;s Global Currency Union] plan, the two parties in a cross-border transaction will still do business in their home currencies but their contract will be denominated in &#8220;global currency units&#8221; whose value is determined by a unique index key based upon a weighted basket of currencies. 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In the longer term, breakout above $2050 would offer a target of $2400. Rising energy prices are fueling inflation fears, with Brent crude\u2026","rel":"","context":"In &quot;Euro&quot;","block_context":{"text":"Euro","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/forex\/euro\/"},"img":{"alt_text":"Spot Gold","src":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2022\/2022-03-08-gold.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2022\/2022-03-08-gold.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2022\/2022-03-08-gold.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2022\/2022-03-08-gold.png?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":13722,"url":"https:\/\/thepatientinvestor.com\/index.php\/2014\/05\/26\/chinas-export-dilemna-2\/","url_meta":{"origin":5588,"position":1},"title":"China&#8217;s export dilemna","author":"ColinTwiggs","date":"May 26, 2014","format":false,"excerpt":"Growth in value of exports from China has slowed to single figures since 2012. It will be difficult sustain current GDP growth if this trend continues. The Harper Petersen index of shipping rates for container vessels, the Harpex, remains near its 2010 low, reflecting continued weakness in Asian manufactured goods\u2026","rel":"","context":"In &quot;Market Insights&quot;","block_context":{"text":"Market Insights","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/market-insights\/"},"img":{"alt_text":"China Exports","src":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2014\/2014-05-26-china-exports.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2014\/2014-05-26-china-exports.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2014\/2014-05-26-china-exports.png?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":16122,"url":"https:\/\/thepatientinvestor.com\/index.php\/2018\/02\/23\/why-is-the-dollar-falling\/","url_meta":{"origin":5588,"position":2},"title":"Why is the Dollar falling?","author":"Colin Twiggs","date":"February 23, 2018","format":false,"excerpt":"The broad, trade-weighted US Dollar index has been declining since early 2017. This is the best explanation I have found for current US Dollar weakness. From Bank of Montreal, BMO Nesbitt Burns: The relationship isn\u2019t perfect, but as a general rule of thumb, the USD declines in years when global\u2026","rel":"","context":"In &quot;Commodities&quot;","block_context":{"text":"Commodities","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/gold-commodities\/commodities-gold-commodities\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":15217,"url":"https:\/\/thepatientinvestor.com\/index.php\/2017\/05\/05\/is-the-great-china-crash-upon-us-macrobusiness\/","url_meta":{"origin":5588,"position":3},"title":"Is the great China crash upon us? | Macrobusiness","author":"ColinTwiggs","date":"May 5, 2017","format":false,"excerpt":"By Houses and Holes Reproduced with kind permission from Macrobusiness. From Axiom Capital: While we, as well as the few bearish peers we have, have warned of a pending \u201ccredit event\u201d in China for some time now \u2013 admittedly incorrectly (China has proved much more resilient than expected) \u2013 the\u2026","rel":"","context":"In &quot;Banks &amp; Interest Rates&quot;","block_context":{"text":"Banks &amp; Interest Rates","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/the-fed-banks-interest-rates\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":12207,"url":"https:\/\/thepatientinvestor.com\/index.php\/2015\/08\/19\/currency-manipulation-and-its-distortion-of-free-trade-a-b-laffer\/","url_meta":{"origin":5588,"position":4},"title":"Currency Manipulation and its Distortion of Free Trade | A B Laffer","author":"ColinTwiggs","date":"August 19, 2015","format":false,"excerpt":"Extract from Arthur B. Laffer's paper on currency manipulation: ....Successful currency manipulation inhibits the exchange rate from acting as an automatic stabilizer to macroeconomic events, and thereby leads to growth and trade imbalances. Currency manipulation has therefore, in part, inhibited the world from fully recovering from the financial crisis. For\u2026","rel":"","context":"In &quot;China &amp; HK&quot;","block_context":{"text":"China &amp; HK","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/countries-regions\/china-hk\/"},"img":{"alt_text":"GDP growth rates","src":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2015\/2015-08-19-worldgdp.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2015\/2015-08-19-worldgdp.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2015\/2015-08-19-worldgdp.png?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":6889,"url":"https:\/\/thepatientinvestor.com\/index.php\/2013\/03\/06\/cic-president-warns-japan-on-currency-devaluation-wsj-com\/","url_meta":{"origin":5588,"position":5},"title":"CIC President Warns Japan on Currency Devaluation &#8211; WSJ.com","author":"Colin Twiggs","date":"March 6, 2013","format":false,"excerpt":"LINGLING WEI writes from Beijing: The president of China's giant sovereign-wealth fund warned Japan against using its neighbors as a \"garbage bin\" by deliberately devaluing the yen, joining a growing number of Chinese officials sounding alarms about a potential currency war. Read more at CIC President Warns Japan on Currency\u2026","rel":"","context":"In &quot;China &amp; HK&quot;","block_context":{"text":"China &amp; HK","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/countries-regions\/china-hk\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/5588","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/comments?post=5588"}],"version-history":[{"count":0,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/5588\/revisions"}],"wp:attachment":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/media?parent=5588"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/categories?post=5588"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/tags?post=5588"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}