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Currency War: A Prelude to Much Larger Troubles Ahead

In North America, it is customary that when a person dies, the dead corpse is embalmed and put on a make-up so as to make it look like the dead person is still alive but only taking a siesta.

September 29, 2010 (Hamsayeh.Net) - Following the great recession of 2007, it appears today that so many export driven countries are now engaged in fierce competition to lower the value of their national currencies. A lower currency would increase exports for the country that manages to keep its national currency at a steady low level against other players, hopefully for long periods.

According to Brazilian finance minister Guido Mantega, an international currency war has broken out as governments around the world try to lower their exchange rates in order to boost competitiveness, FT reported. This type of currency war, which is a prelude to an all out war , normally occurs when economies around the world experience deep troubles.

Moreover, there have been news that the US Federal Reserve has just started printing vast quantities of paper money to keep the Wall Street happy. It tries to say everything is normal and western financial system is doing just fine. In North America, it is customary that when a person dies, the dead corpse is embalmed and put on a make up so as to make it look like the dead person is still alive but only taking a siesta (nap).

This is what the Obama administration and Federal Reserve are doing to that once called the land of golden opportunities. These days, increasing number of people from around the world - in their own native languages - call the US the land to stay away from and moreover the land drenched in crimes, violence, poverty, unemployment and lies.

The US and other industrial economies are able to sustain an economic bubble for as long as there’s steady supply of oil injected into the global economy. But not everything seem to go as smoothly as one might hope. The existing currency war, show the underlying troubles ahead.

Two weeks ago Brazil's Central Bank said it was planning to boost the value of US dollar by purchasing as much as $1 billion USD every day at 1.7094 reais.  Other central banks in Japan, S. Korea, Taiwan and China are also busy lowering their own currencies while keeping the USD higher.

The existing currency war, show the underlying troubles ahead.

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