There is a new book called Currency Wars: The Making of the Next Global Crisis, by James Rickards. Here is the Amazon synopsis.
How the worldwide currency war, already under way, will soon affect us all.
The debasement of the dollar, bailouts in Greece and Ireland, and Chinese currency manipulation are unmistakable signs that we are experiencing the start of a new currency war. Fought as a series of competitive devaluations of one country’s currency against others, currency wars are one of the most destructive and feared outcomes in international economics. Left unchecked, the new currency wars could lead to a crisis worse than the panic of 2008.
Drawing on a mix of economic history, network science, and sociology, Currency Wars provides a rich understanding of the increasing threats to U.S. national security, from dollar devaluation to collapse in the European periphery, failed states in Africa, Chinese neomercantilism, Russian adventurism, and the current scramble for gold.
James Rickards, an expert who has worked at the highest levels of both finance and national security, explains everything we need to know about this growing global standoff. He takes readers around the world and behind closed doors to explain complex financial and political currents with absorbing firsthand anecdotes.
Basically, the issue is that China may not only be gaining a trade advantage, but that China’s hoarding of dollars and gold is an attempt to displace the dollar as the global currency.
We’ve known this for years. And, it is articulated in the Chinese plan to bring down the United States in their own “Unrestricted Warfare.” DC doesn’t seem to get it that this attack is every bit as planned as the radical elements in the Middle East using their methods.
It is as if we were Germany prior to the invasion of the Allied Forces in France. Hitler’s hesitation to put in a defense in the proper position could have changed the course of the invasion of Europe. Today the invasion forces have landed in strength and yet our leaders seem to do nothing to correct the invasion. The Chinese have put forth just as masterful a deceit as the Allies did, fooling the leadership of Germany, mainly Hitler.
We have already had China threaten a currency war when they were being called on their currency manipulation scheme. All we responded with is appeasement.
It is time for our political leadership of both parties responded to the threats on our economy and stop spending time on relative non issues. Are they just trying to copy Nero while Rome burns? Perhaps they have the same thing in mind, a new world order, while the underclasses are destroyed by the fire?
George Orwell seems to have predicted the course of history. Perhaps it is because he studied it.
Tom T.
Ever since Bretton Woods ended, the US has been running increasing trade and budget deficits. Because the US has been inflating faster then its trade parters which results in lowers savings and investment, other countries have accumulated loads of US dollar claims. The only time Washington is going to be interested in policies to promote savings and reduce wasteful consumption spending is when the dollar is no longer the world’s reserve currency. If that happens then Washington will have no choice but to balance trade.