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Saturday, September 28

Ya mean there's no currency war?

Responding to a critic who disputes my claim that Ben Bernanke's quantitative easing experiment is a form of currency war. I'll grant there are different schools of thought on the issue. In February, when the issue heated up, The Economist jumped into the fray with the headline Phoney Currency Wars: The world should welcome the monetary assertiveness of Japan and America. The World Socialist Web Site retorted with G20 Issues Empty Declaration Against Currency War

But the G20 confab in Moscow in February settled the debate. The G20 members decreed that it's not currency war if a currency's value is driven down by a government in the effort to address purely national needs. That shut up the ASEAN members who were complaining that Japan's massive QE program, which copies the Fed's, is currency war.

Now let's see how we can amplify on the G20 clarification of currency war by putting it in a sentence. The Nazi annexation of Poland was not war; it was simply that Germans needed more space.

[flipping a pen in the air] My critics can do better than this.

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