A Brazilian observes, "the fallout from a currency war could actually be quite severe - and global in reach. The games that governments are currently playing in currency markets could cause countries to set up trade barriers against imports. And that could bring about the end of the truly global economy - a "de-globalization" that would steal our current standard of living and thwart a return to prosperity."
"In short, pretty much every major economy is trying to weaken its currency against its competitors - albeit by a variety of methods. Some are holding interest rates artificially low. Others - as Brazil and China are increasingly attempting to do - are trying to drive down their currencies by putting direct blocks in the way of currency appreciation.
Let's be clear: Each protectionist "currency war" move blocks the free flow of finance around the world, and raises the temptation on competitors to raise barriers of its own.
"
Looks a bit scary, if true.
