"This Western media quoted conclusion is contained in the book of investment banker and military analyst James Rickards “Currency Wars: The Making of the Next Global Crisis. In it the author states that we live in the period of third currency war launched by the Ben Bernanke-led U.S. Federal Reserve by flooding China with inflation through quantitative easing in 2009 and 2010. By increasing the money supply, the Fed has forced China to print new yuans to support the new peg to the dollar. Now China imports the inflation from the U.S. through the binding rate mechanism, whereas previously it exported deflation to the U.S.
Rickards indicates that the outcome of the third currency war for the past 100 years can be much worse than the previous two. The first currency war was the restoration and the collapse of the gold standard in 1921-1936, which played its role in the Great Depression, military invasions of Nazi Germany and imperial Japan. The second currency war was the period after the abandonment of the Bretton Woods dollar-gold binding which ended with economic shocks and sent the world into an inflationary spiral in the 70s. The third war has led to the Arab spring as a result of food inflation jump triggered by rise in the money supply".......READ MORE
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