blog.milesfranklin.com / By Andrew Hoffman / January 28th, 2013
When most people hear the term “currency war,” they either dismiss it; or have not a clue what it means. That’s a shame, as this deleterious process is the modus operandi of fiat currency regimes. Moreover, now that – for the first time in HISTORY – all nations utilize fiat “money,” currency wars are as ubiquitous as government “can-kicking.”
The premise of “currency war” is simple. In debasing one’s currency the fastest, governments seek to make investment and spending cheaper for foreigners; and thus, to increase manufacturing and consumer sales market share.
For example, when the Japanese government PRINTS MONEY to make the Yen more “competitive” against the dollar and Euro; it is simply saying it wants Toyotas to be cheaper than Fords or BMWs. Hence, more corporate revenues, government tax receipts, and private jobs.
The fact that said “profits” have severely diminished purchasing power is immaterial to Japanese politicians – who simply want VOTES; and the Bank of Japan, which profitsfrom the artificial “carry trade” generated by Yen devaluation…
You Wanted Inflation, You Got It: Japanese Gasoline Price Rises To Eight Month High
Thus, it shouldn’t surprise you that, amidst an expanding Japanese DEPRESSION – characterized by “DEMOGRAPHIC HELL,” nuclear fallout, and – most importantly to said politicians – declining market share…
