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A New World War of Currencies?

Nobel economics laureate Joseph Stiglitz on U.S. economic policy –

“It’s doing nothing for the American economy, but it’s causing chaos over the rest of the world. It’s a very strange policy that they are pursuing.”

Ed. note: A fascinating account of the way it just might be, behind all the pomp and propaganda.  One might liken the leading nations and their currencies to dying elephants thrashing about, struggling for ‘sustenance.’


From: Breaking All The Rules / Sartre

Currency Wars among Controlled Economies

The rush to devalue national currencies is like cutting off your foot so your favorite transnational corporation can sell you an overpriced prosthesis, made in their overseas sweatshop, to an HMO that Medicare will cover. Soon with Obamacare, only Medicaid recipients will qualify. The way to look at devaluing your countries currency is that it takes more worthless fiat species to buy the same amount of products. How laudable is this economic policy? reports that in 2006 the United States exports as a percentage of GDP, $0.08 per every $1. That ranks 179 among the Globalist’s community of nation. Back in 2006, the Dollar was still viewed as a relatively stable reserve currency. After the 2008-manufactured financial collapse, the dollar rose briefly on foreign currency exchanges. Today you only hear that infamous giant sucking sound that presidential candidate Ross Perot warned about back in 1992. That thud you hear is our national wealth flushing down the drain of the international sewage-treatment system.

As a beleaguered tool of mega economic control, the consumer has only one purpose, buy more junk. Paying for the garbage translates into incurring higher personal debt levels. That formula maintained its momentum when the Federal Reserve notes were the coin of the worldwide realm, but no longer. Countries can no longer service their own government debt and the prospects of extorting even higher taxes to pay the banksters for their debt created currency racket is hitting a brick wall.

Thus, the need to resurrect inflation and devalue the U.S. Dollar is upon us. Debt repayment in cheaper currency stretches the sting for a while, but the breaking point is approaching. The globalists fully understand this process, since it is part of their master plan. Not every country is willing to suffer the same fate from this spider web of national self-destructive bankruptcy.



The Koran Times reports,

“The escalating “currency war” between the United States, China and Japan is encouraging Korea and other nations to thoroughly review their foreign exchange rate regimes.

The Korean government had not wanted the tricky Sino-American issue to spoil the G20 summit to be held in Seoul in November. But recent remarks from influential figures such as Dominique Strauss-Kahn, the managing director of the International Monetary Fund, and Sakong Il, the chairman of Seoul’s G20 committee, indicate that the issue will be unavoidable.

“The foreign exchange rate will be discussed in the upcoming summit as part of a global economic framework discussion,” Sakong acknowledged last Thursday during a promotional event of the G20 committee.

His remark reflects the general consensus reached at an international forum held on Tuesday and Wednesday in Seoul, where many participants such as former Canadian Prime Minister Paul Martin insisted the G20 treat the exchange rate issue more seriously”.

Widely read columnist and hedge fund manager Bill Fleckenstein provides additional insight on the next round of quantitative easing,

“What actually is not known is what form said QE2 will take. “Fed mulls new bond approach,” a story in the Sept. 28 Wall Street Journal by Fed reporter (and mouthpiece) Jon Hilsenrath, suggested that our central-bank powers that be have not decided exactly how to implement its QE2. According to the article, any Fed action to push money into the economy would likely be on the small side, yet over a longer period, as opposed to a large, short-lived “shock and awe” approach.

Even more important than Hilsenrath’s article was an above-the-fold column Sept. 27 in the Financial Times headlined “Brazil in ‘currency war’ alert,” in which Brazil’s finance minister declared: “We’re in the midst of an international currency war, a general weakening of currency. This threatens us because it takes away our competitiveness.”

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