Currency wars set to break out as volatility grows

The global economic battle which ignores the calendar is omnipresent. The race to the bottom in fiat, or battle to own the weakest currency while still being able to issue debt is not a new trend. Beggar thy neighbor was used to describe policies where one country benefited at the expense of another. The use of tariff or quotas on imports or currency devaluation used to improve the trade account of one nation at the expense of another was common in the Great Depression. The policy practice can be seen growing in popularity today as the pace of global growth slows.

GET set for an outbreak of currency wars with the potential to shake global confidence as markets move towards the volatile October period.

Source: theaustralian.com.au

Contributed by Bob