The currency wars are heating up because of the downturn in the global economy since before the collapse of Lehman brothers. Countries now to fuel their export driven economies have understood and realized that paper currencies can easily be managed, if the currency is too high just print more money. Recently the Brazilian finance minister, Guido Mantega, has said that, quoting from the BBC, "We're in the midst of an international currency war," he told a meeting of industrial leaders. "This threatens us because it takes away our competitiveness. The advanced countries are seeking to devalue their currencies."
The Obama administration has taken the first steps towards a currency war with the peoples government of China by declaring that it believes China's currency to be undervalued and that constitutes a subsidy. All nonsense of course, the value of a paper currency is ultimately determined by a government, When China began its industrial leap forward by exporting goods to the West the Yuan was linked to the dollar, why today is it suddenly a problem yet 15 years ago it was not a problem. Many currencies are pegged to the dollar, why are they not declared to be under or over valued because that is a matter of opinion because the market does not play a meaningful role in the value of a legal tender that is paper, that paper is forced onto the people. When the Central banker raises or lowers interest rates when did he consult the people, why does the market not have a hand in deciding interest rates. The uselessness of interest policy has become apparent, Monetary economists just did not understand how economics work, having a friend owning a newspaper and being the only voice does not in the long run mean you are right, you can just quickly make money and the world will see your follies and lies when you are dead, by then you are dead and your offspring have money from the deceit.
Both Obama and the People's Government of China are both wrong and right, with everybody printing money, with others pegged to the dollar but not being targeted by the American bankers/ corporate regime, a true regime, sure you can say what you like, but tell the truth and show they are wrong that is it for you, just be liar and make money and system will love you, is that not a regime. However both the governments of China and USA are right and wrong.
We need a single currency, a currency not controlled by governments, with Obama's election ploy of trade saber rattling with China, gold has shot up, $1 310 per ounce, but true freedom is not what any regime wants, hence they will fight for their printed money, therefore the currency wars have just began, why was Japan not criticized for supporting its currency just recently when government of Japan felt currency had risen too much against dollar, where was the anger from the White House.