Fiscal Cliff. Debt Ceiling. Inflation. Pharmaceutical Shortages. Gun Control. Foreign Wars. Domestic Enemies. Economic Collapse. Which will be the catalyst that we shape our future? Economic warfare through currency manipulation may be the “Black Swan” event but the end result will be the same.
David DeGerolamo
Faced with a stubbornly slow and uneven global economic recovery, more countries are likely to resort to cutting the value of their currencies in order to gain a competitive edge.
Japan has set the stage for a potential global currency war, announcing plans to create money and buy bonds as the government of Prime Minister Shinzo Abe looks to stimulate the moribund growth pace. (Read More: Japan PM Says BOJ Must Set 2% Medium-Term Inflation Goal)
Economists in turn are expecting others to follow that lead, setting off a battle that would benefit those that get out of the gate quickest but likely hamper the nascent global recovery and the relatively robust stock market.
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