There are several levels regarding the currency wars. Firstly you have the actual and in fact coordinated depreciation of all currencies (OECD) as countries with humongous amounts of debt try to inflate their way out of debt.
So then the relative value of all currencies may be in fact almost intact as they overtime depreciate and will depreciate even further. Thus when people now say that the dollar has gained and is strengthening they then compare the value of the dollar with another currency e.g. the Euro that then also is in the midst of becoming less and less worth.
Bottom line yes the dollar can at times look stronger or weaker vs. other fiat currencies. But what they all have in common is that the real purchasing power of ALL these currencies has been reduced and will be reduced even further. Don't get fooled by just simply comparing what in fact is one worthless currencies interrelationship with another worthless currency.
Ask yourself how much I get for my buck in real terms when you go out and pay for gasoline, milk, butter, meat, when you pay your fees, rent in order to get by on a daily basis.
In the Euro zone the country dictating all shots is Germany a country that gains significantly in competitive advantage vs. all other economies as their exports (worlds 2nd or 3rd largest export economy) with a lower valued Euro becomes cheaper and significantly easier to sell.
In the US obviously the FED itself dictate its currency objective and with the amounts of debt they have accumulated there simply is no other way out of this other than to default or inflate.
So expect no improvement relative real purchasing power relevant to any of these currencies going forward.
Then you have what in fact is a real physical currency war fought by military means.
Here something worthwhile to read:
Importantly, readers must understand that the United States is actually in an active war with Iran. Most think the US is not at war with Iran because the US does not have troops inside Iran such as it does in Afghanistan, Pakistan, and Iraq, and is not engaging in behind-the-scenes support like in Libya, Yemen, and Somalia. The US is involved in active war with Iran in the form of a Siege:
http://www.thefinancialmarketnews.com/don%E2%80%99t-get-it-twisted-we-are-already-at-war-with-iran
Gaddafi gold-for-oil, dollar-doom plans behind Libya 'mission'?
http://www.youtube.com/watch?v=GuqZfaj34nc
So in actuality countries with only fiat paper money are deflating their worth and then they with all means possible try to maintain the status quo so that other economies with real wealth in terms of recourses will keep on taking useless paper money, with a more than bleak outlook as far as real future worth is concerned, as payment for the real worth of e.g. oil.
Or how about this deal – I’ll give you my paper money and I can guarantee you it will become even less valuable in the future giving you less purchasing power using it and you’ll give me you precious oil that I desperately need to keep my real economy going. Sounds attractive – anyone?
Clearly were now in the very final stages of what in fact only can be described as imperial overstretch as the US now is actively involved in 6 real wars, adding then also the cyber war yet another one and adding all these behind the scenes activities vs. e.g. Iran, Syria, Pakistan there is a lot of money required to maintain the current status of affairs as more and more countries with real worth of recourses start to challenge this the current status. Iraq tried it, Libya tried it and Iran and Venezuela is doing it.
Money the US now simply try to print more of as their debt burden now at epic levels keeps on escalating at an even more aggressive phase than ever before.
If all of this is true then this as to be dead serious business now for the OECD to try to maintain this order? Well for starters see what happened in Norway in what only can be described as a real attempt to kill off their PM, Stoltenberg and paralyze with fear the majority part of the ruling coalition as they were hit by assassins in the very heart of their political organization, their youth movement.
This event occurred as Norway’s political intentions now was to withdraw from the Libya war and at the same time loudly has supported the Palestinian case. Had more countries been allowed to follow Norway’s intentions (Holland most certainly have voiced such intentions) well then this whole of cards simply would have come tumbling down in a pile of rubbles. Therefore it was important to stop it with all means possible and thus we can expect within a not too long timeframe a revised Norwegian policy relative the support of the Libyan war as well as the Palestinian case. Needless to say we’ll see Holland now also complying.
You need to ask yourself when outrageous event like the one we now saw in Norway happen – who benefits the most?
With amazing predictability these lone, mad men assassins indeed occur at very opportunistic and politically critical moments. This was the case with the JFK and Martin Luther King assassinations not mentioning the innumerable coups and destabilizing evens that over the decades have occurred primarily in resource rich third world countries.
Speaking of Iran and the history of British and US interventions over the years in that country it’s worthwhile to read the story behind the 1953 event.
1953 Iranian coup d'état
http://en.wikipedia.org/wiki/1953_Iranian_coup_d'%C3%A9tat
By the way Norway is also a very recourse rich country but it certainly hasn’t been very compliant in regards of the EU participation at any level. Something someone possibly now wants to change?
In Sweden when this was the case in the early 90ies and the people clearly had quite a strong negative bias towards this whole EU project it found itself all of the sudden attached primarily by Sorors hedge funds resulting in interest rates skyrocketing all the way up to 600% for a short while.
The outcome – all of a sudden there was a political majority supporting the EU project. “We can’t defend ourselves on our own – we need to join the Euro” then and all of a sudden became the political mantra as this occurred. That clearly was a political outcome that would have looked very different had hedge funds like Soros not been allowed to use derivates and leverage extensively.
So were here dealing with not only financial instruments of mass destruction but in fact instruments of great political intervention. You have to ask yourself why the politicians in the mid 70ties all of a sudden and all over the world embarked on a rout that in real terms gave away all their political powers to the financial markets.
Now in terms of Norway these softer measure are unusable towards Norway as it sits on vast recourses of oil and money and has one of, possibly the, strongest economies, educated population a great infrastructure. It sure is a really well functioning and democratic society.
Then if you have a mantra such as “order out of chaos” and you really believe in it then you need either have or create chaos in order to achieve order.
Given the amount of chaos we now see unfolding to an ever increasing extent in the world financial markets as well as in the middle east it’s not entirely improbable we as an outcome of all this will see an unprecedented amount of order eventually.
Not sure who then will benefit or even if this then is something to look forward to.
Instead there are simple solutions. Take away the power from the financial markets by implementing real oversight and true regulation in that sector. Make derivates and extensive leverage as well as naked short selling illegal. Build real protection between tax payer money and the financial sectors constant attempt to transfer all risks from their sector to the taxpayers. Make a legal separation between investment banking and savings banks, never allow any of these to merge at any time. Take away the banks power to create money. Don’t allow any participant in that sector to become too big to fail. At all times protect savers and peoples purchasing power.
And in order to get the economy in order we need to make the government generate interest free loans to be used to investing huge infrastructure projects improving the general welfare and put people back to work in the real, not bogus paper based fake banking paper, economy. Gradually then as the economy improves, consumption takes off and taxes are paid the debt burden in all aspects of the economy will improve.
Money to The People - NOT to Banks
http://www.youtube.com/watch?v=nA54cgkvc_w&feature=related
Alan Greenspan discusses oil and the war in Iraq
http://www.youtube.com/watch?v=1DKzXAOupqM&feature=related
Alan Greenspan's Ideology
http://www.youtube.com/watch?v=Dqe0VqIOrFQ&feature=related
The Warning
http://www.pbs.org/wgbh/pages/frontline/warning/
Economic Hitman
http://www.youtube.com/watch?v=0CofEbxtIxI&feature=related
The Money Masters
http://www.youtube.com/watch?v=lXb-LrVkuwM
Libya: It’s Not About Oil, It’s About Currency and Loans
http://www.johnperkins.org/?p=1051
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