The motion picture “Rollerball” was originally produced in 1975. The nations of the world did not engage in “war combat” anymore, in other words, bombs, bullets, and battles no longer determined who was the “greatest of them all,” instead corporations fought each other in an arena using a violent game called “rollerball.”
Here’s a movie trailer for the film “Rollerball”, it’s a good “popcorn” movie with enough violence to keep the audience’s attention. I’m not a proponent of violence or violent movies. The movie just reminds me of what we may be vicariously experiencing now in the “Currency Markets.”
I came across this article in my “hard copy”, crinkly, Chicago Tribune. Actually the article was written by Don Lee of the LA Times. U.K. crisis raises fears of currency wars.
In sifting through the news article, I can link many of the ideas and comments of Mr. Lee to blogs that I have previously written. As I’m a “former” computer trainer and instructor, I learned that ‘chunking” the information helps in understanding it. I, like you, get “cross-eyed” when trying to understand the financial goings-on (or “off”) of the stock market, banks, financial entities such as the Federal Reserve Bank, IMF International Monetary Fund, you name it!
Anyway, here are some references to Mr. Lee’s article and accompanying blog references:
“Meanwhile, U.S. and Japanese government bond yields hit record lows as anxious investors continued to run for safety.” (See What is a government bond? )
“And the British pound fell to a fresh 31-year low—to less than $1.30—in what some analysts see as a sign of prolonged volatility ahead for financial markets and increased contention among nations especially over currency values, which are critical in global trade and capital flows.” (See Trade Deficits and Exchange Rates, also see Devalue Currency)
“…but the British referendum to quit the EU has brought a resurgence of demand for the dollar as investors seek the security of U.S. Treasury notes.” (See Reserve Currency, see Strong Dollar, see U.S. Treasury Bonds)
“…Like the dollar, the Japanese yen is a “safe-haven” currency, and it has jumped in recent days, much to the chagrin of Japanese officials who want to preserve their exports.” (See Current Account Deficit)
The “Currency Wars” are not just about “money”, they are about “trade”, they are about the “value of money”, they are about the quantity of imported goods a country’s money will be able to “buy”, and they are about how much money (income) a country’s exported goods will generate for the exporting country.
So you see Mr. Lee’s news article brings together a ton of issues under one “umbrella” so to speak. As for the movie “Rollerball”, it is science fiction. The script and a magazine article were written in the 1970s. However, isn’t it amazing how fiction can reflect reality in retrospect!