18.11.2013 - UK looks ill-prepared if a global currency war breaks out
With its linked trade and innovation deficits, the UK seems as unprepared as it was for real war in 1939. Rumours of war are in the air. Currency war, that is. The US treasury has forged an alliance with Brussels to attack Germany's beggar-thy-neighbour approach to the rest of the eurozone. Last week the Czech government said it would defend its economy by driving down the value of the koruna, following the aggressively interventionist example of Japan and Switzerland. It's not hard to see why the atmosphere is becoming less cordial. This is a low growth world marked by over-capacity. Wages are under downward pressure and this is leading to ever-stronger deflationary pressure ..............................................Full Article: Source
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