Tug of War

In recent years, the value of the U.S. dollar has fluctuated wildly. Japanese investors have lost billions in U.S. markets, causing an almost unprecedented run on the dollar. The leaders of the world currency markets were forced to band together to push up the value of the U.S. dollar. Tug of War: Today's Global Currency Crisis is the riveting story of this flow of money around the globe and what it means for us today. In 1991, the Mexican government tied the value of the peso to the dollar. As the peso slid and almost vanished, the fortunes of the dollar waned. Investors around the world, especially the Japanese, lost confidence in the dollar, creating a soaring yen and dragging down the value of the dollar even more. Subsequent events in the world currency markets pulled the dollar in even more directions: rogue traders lost billions on bad deals; the European Union began determining the value of its own currency; Japanese banks admitted enormous, previously concealed, losses. The tug of war continued. . Paul Erdman, as well-known for his ability to predict financial markets as for his ability to write a suspenseful story, clearly explains the tangled basis and continuing strength of the currency crisis, gives his predictions about the future, and offers advice to market masters on the direction they should pursue.