According to numerous high-level insiders, the global currency war is accelerating:
- Current Bundesbank president Jens Weidmann
- St. Louis Federal Reserve Bank president James Bullard
- Philadelphia Federal Reserve Bank president Charles Plosser
- Outgoing Bank of England chief Mervyn King
- Russian Central Banker Alexei Ulyakeyev
- European Central Bank board member Benoit Coeure
- Reserve Bank of Australia Governor Glenn Stevens
- Brazil’s finance minister Guido Mantega
- German chancellor Angela Merkel
- Billionaire investor George Soros
And Japan’s escalation of the currency war has caused leaders in the Eurozone (more), Norway, Sweden, South Korea, Taiwan, Columbia, Mexico, Peru, Chile, Venezuela and many other regions to consider further devaluing their currencies. China may be joining as well. (And James Rickard and Reggie Middleton think that Germany’s demand for its gold is part of the currency war.)
We’ve been in a global currency war for years.
As the Wall Street Journal asked in 2010:
Beggar-thy-neighbor currency devaluations proved ruinous for the global economy in the 1930s. Is the world setting off down the same slippery slope again?
Yes, we are.
…
Venezuela fires 1st nuke in currency war ….DEVALUES CURRENCY 47%
Max Keiser: “We’re there.. We’re in World War III!”
We Are Going To Kill The Dollar
“China Accounts For Nearly Half Of World’s New Money Supply”
After having less than half the total US deposits back in 2005, China has pumped enough cash into the economy using various public and private conduits to make even Ben Bernanke blush: between January 2005 and January 2013, Chinese bank deposits have soared by a whopping $11 trillion, rising from $4 trillion to $15 trillion! We have no idea what the real Chinese GDP number is but this expansion alone is anywhere between 200 and 300% of the real GDP as it stands now. And more: between January 2012 and January 2013 Chinese deposits rose by just over $2 trillion. In other words, while everyone focuses on Uncle Ben and his measly $1 trillion in base money creation in 2013 (while loan creation at commercial banks continues to decline), China will have created well more than double this amount of money in the current year alone!
