Generosity of Asian Central Banks

October 12, 2011

(This article was first published on Timely Portfolio, and kindly contributed to R-bloggers)

The only thing that separates the United States from Europe and the notorious PIIGS is the generosity of Asian Central Banks who have been consistently quantitatively easing since 1998 (Join the Reserves).

From TimelyPortfolio

Without this generosity, the United States could very easily have entered a death spiral (see Death Spiral of a Country and Death Spiral Warning Graph) in 2008 and still might fall into this disastrous trap.

Deliberately attacking this very tenuous thread seems foolish, but this foolish action has found support with our fine politicians Washington Post “Senate approves China currency bill”.  The US needs to recruit some US $ buyers, but unfortunately there are none to fill the multi-trillion dollar gap.

Even more concerning is the focus on China who has been steadily attacking the problem.  The focus on China does not make sense when you look at the appreciation of the Chinese Yuan.  I see a lot more Korean cars on the road and TVs and appliances in the stores, but I do not hear any mention of the extreme undervaluation of the Korean Won to the US$ but especially the Japanese Yen, so it appears the Koreans Won.

From TimelyPortfolio

I agree that the US$ reserve building needs to stop, but let’s not deliberately induce a positive feedback death spiral.

R code (click to download from Google Docs):



    main=”Chinese Yuan and Korean Won
    1997 to Sep 2011″)
legend(“right”, c(“China”,”Korea”), lwd = 2, bty=”n”,

To leave a comment for the author, please follow the link and comment on their blog: Timely Portfolio. offers daily e-mail updates about R news and tutorials on topics such as: Data science, Big Data, R jobs, visualization (ggplot2, Boxplots, maps, animation), programming (RStudio, Sweave, LaTeX, SQL, Eclipse, git, hadoop, Web Scraping) statistics (regression, PCA, time series, trading) and more...

If you got this far, why not subscribe for updates from the site? Choose your flavor: e-mail, twitter, RSS, or facebook...

Tags: ,

Comments are closed.


Mango solutions

RStudio homepage

Zero Inflated Models and Generalized Linear Mixed Models with R

Dommino data lab

Quantide: statistical consulting and training



CRC R books series

Six Sigma Online Training

Contact us if you wish to help support R-bloggers, and place your banner here.

Never miss an update!
Subscribe to R-bloggers to receive
e-mails with the latest R posts.
(You will not see this message again.)

Click here to close (This popup will not appear again)