Currency Wars

Ready....  Set.... GO...!

Many people focus to close to home.  Don't misunderstand me, there ARE big issues at home that raise the hackles of many economists in the land of Obama.....  However, one sure way to dramatically exacerbate the global economic situation is to.......  start currency wars.

Here's some finer points from a great Globe and Mail article;

"Devaluing currencies to boost competitiveness is an old standby, but one fraught with the risk of tit-for-tat retaliation that could end up doing serious damage to the players involved and derail the global recovery.
Some analysts argue that open hostilities have already broken out, fuelled by Japan’s determination to weaken its yen, a rapid rise in the euro and several other emerging market currencies, and long-simmering anger over China’s management of its yuan.
Monetary officials as far afield as South Korea, Russia, Sweden, the Czech Republic and Indonesia have signalled their readiness to join the devaluation wave to safeguard their interests.
Bank of England Governor Mervyn King recently warned that currency wars could drive the still-recuperating global economy into reverse. “You can see, month by month, the addition to the number of countries who feel that active exchange rate management, always to push their exchange rate down, is growing.”