World Cup of Forex http://www.forexconspiracyreport.com/world-cup-of-forex/ The finals of the Soccer (Football) World Cup are rapidly approaching. It has come to Germany and Argentina, Mueller and Messi. Lucky for Argentina this is not the world cup of Forex! The German economy is strong and Germany is, to a degree, accomplishing with its industry and banking system what it did not accomplish by war in the 20th century. Germany dominates Europe economically. Meanwhile Argentina is meeting a second time with a debt mediator. The nation of Argentina defaulted on its debts a decade ago and its creditors finally caught up with the nation in an American court room. A suit filed by holdout investors won. These were folks who loaned money to Argentina and refused to take a debt write down as part of a settlement years ago. Messi and company have a good shot at taking the golden football back to Buenos Aires but if this were the World Cup of Forex it would be a different story. What are the lessons to be learned from this situation for Forex traders? Certainly over the years the worst Forex trades were probably those expecting a recovery of the various Argentine currencies. Argentine Currency History Here is a brief history of the Argentine peso. The peso ley was the Argentine currency from 1970 to 1983 and replaced the previous currency, the peso moneda nacional 100 to 1. The peso argentino lasted from 1983 to 1985 and replaced the peso ley 10,000 to 1. The austral lasted from 1985 to 1991 and replaced the peso argentine 1,000 to 1. The peso convertible was introduced in 1992 and replaced the austral 10,000 to 1. Its exchange rate was fixed at 1 to 1 with the US dollar. For every peso convertible in circulation there was a US dollar in currency reserves in the Central Bank of Argentina. The fixed rate lasted until the 2001 financial crisis at which time the currency floated against the US dollar. When the Argentine currency became convertible in 2001, one peso convertible was worth 10,000,000,000,000 pesos moneda nacional. That is a ten trillion fold devaluation of the Argentine currency over thirty years! USD/ARS/EUR In trading currencies one needs to look at current times. The history of the various pesos is awful but today one trades the ARS. The rate of exchange for the Argentine currency, the ARS

1. World Cup
of Forex
Argentina is Lucky That the World Cup
Is about Soccer and Not Forex
ARS

2. The finals of the Soccer (Football)
World Cup are rapidly approaching. It
has come to Germany and Argentina,
Mueller and Messi.

3. Lucky for Argentina this is not the world
cup of Forex!

4. Before We Continue…
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5. The German economy is strong and
Germany is, to a degree,
accomplishing with its industry and
banking system what it did not
accomplish by war in the 20th century.

6. Germany dominates Europe
economically. Meanwhile Argentina is
meeting a second time with a debt
mediator.

7. The nation of Argentina defaulted on its
debts a decade ago and its creditors
finally caught up with the nation in an
American court room. A suit filed by
holdout investors won.

8. These were folks who loaned money to
Argentina and refused to take a debt
write down as part of a settlement
years ago.

9. Messi and company have a good shot
at taking the golden football back to
Buenos Aires but if this were the World
Cup of Forex it would be a different
story.

10. What are the lessons to be learned
from this situation for Forex traders?

11. Certainly over the years the worst
Forex trades were probably those
expecting a recovery of the various
Argentine currencies.

12. Argentine Currency
History

13. Here is a brief history of the Argentine
peso.

14. The peso ley was the Argentine
currency from 1970 to 1983 and
replaced the previous currency, the
peso moneda nacional 100 to 1.

15. The peso argentino lasted from 1983 to
1985 and replaced the peso ley 10,000
to 1.

16. The austral lasted from 1985 to 1991
and replaced the peso argentine 1,000
to 1.

17. The peso convertible was introduced in
1992 and replaced the austral 10,000
to 1.

18. Its exchange rate was fixed at 1 to 1
with the US dollar.

19. For every peso convertible in
circulation there was a US dollar in
currency reserves in the Central Bank
of Argentina.

20. The fixed rate lasted until the 2001
financial crisis at which time the
currency floated against the US dollar.

21. When the Argentine currency became
convertible in 2001, one peso
convertible was worth
10,000,000,000,000 pesos moneda
nacional.

22. That is a ten trillion fold devaluation of
the Argentine currency over thirty
years!

23. USD/ARS/EUR

24. In trading currencies one needs to look
at current times.

25. The history of the various pesos is
awful but today one trades the ARD.

26. The rate of exchange for the Argentine
currency, the ARS, fell to two to the
dollar in 2002 and fluctuated up and
down in the first decade of the century.

27. Today the ARS trades eight to the
dollar. The Euro began as a currency in
1999 at one to one with the dollar.

28. The currency fell as low as $0.83 to the
Euro in 2001 and recovered, trading
today at one euro = $1.36.

29. The obvious point of this is that
Germany uses the Euro which has
grown versus the USD in the last fifteen
years while the ARS is an eighth as
valuable.

30. When Germany and Argentina play in
the world cup of Forex Argentina loses
badly.

31. For the Trader

32. So, are there guaranteed Forex profits
betting against the ARS?

33. The peso convertible has not done so
well over the last decade or so but it
has not had the problems of previous
currencies.

34. So, using the infamous ten trillion-to-
one devaluation as a guide may or may
not be useful.

35. When the economy was humming
along prior to the 2008 market crash
Argentina built up billions in currency
reserves, in dollars.

36. On a short term basis things are still
shaky in Argentina and strong in
Germany so in the minute by minute
playing of the World Cup of Forex one
might short the ARS and go long on the
EUR.

37. But remember that Germany is not
working with the Deutschmark
anymore.

38. There is a whole southern tier of weak
economies in the Eurozone.

39. Maybe it will come to a shootout in the
end!