Is the currency war finally here?

We’ve known this currency war is coming because it has to. An economy that depends on the whole world selling to US consumers, on credit, while taking America’s jobs and industries can not be sustained. Some people are trying to keep it propped up somehow but it can’t really work out that way, can it?

The way this plays out over the next couple of years is going to be pretty fascinating and will have a huge impact on our prosperity. Do you accept Martin Wolf’s assertion that the US will inevitably win the war by inflating internally through QE? If so at what price does this victory come and how do you invade inflation and high interest rates once the recovery comes?

To put it crudely, the US wants to inflate the rest of the world, while the latter is trying to deflate the US. The US must win, since it has infinite ammunition: there is no limit to the dollars the Federal Reserve can create. What needs to be discussed is the terms of the world

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