Michael Hintze Warns of Currency Wars Amid Debt Crisis

The Australian reports on Michael Hintze’s warning about currency wars amid the debt crisis:

Australia’s most successful hedge fund manager, Michael Hintze, expects European governments to "kick the can down the road" and avoid drastic reform to the eurozone, warning that this option is politically the easiest but economically the most damaging.

The euro could soon win a "race to the bottom" of currency devaluations, he predicts, saying "my concern is that a significant portion of the world will be unable to fulfil its economic potential and at best achieve very low nominal growth, perhaps 0-1 per cent, for an extended period of time."

Hintze, who owns and manages the $US11.6 billion ($11.3bn) London-based CQS hedge funds, also expects China's economic growth to continue slowing, adding: "I also suspect that the recovery in the rate of (Chinese) growth may be U-shaped, rather than V-shaped."

The fund that Hintze personally directs is up more than 23 per cent this year and his views on the world economy are closely watched. His success since founding CQS has lifted him into the ranks of Australian billionaires.

Read the article:  “Hintze warns on currency wars amid debt crisis” – The Australian