Qui gagne la guerre des devises

Who benefits from currency war?

China and the United States faces Europe: winners and losers.

One of the consequences of the global recession is the significant fluctuation of major currencies between them, the external value of a currency reflects privileged manner the economic and financial health of a country.

Those who are worried about a possible confrontation in exchange rates should be aware that the war has actually started years ago and the winners are unique other than China and the United States. By depreciating their currencies against other foreign CURRENCY, they confirm their economic and financial supremacy on the planet.

The United States for years endorse the role of the vanquished but in reality are the winners of this currency war although the 'greenback' is impaired so drastic vis-à-vis other CURRENCY. Retroactively, this could lead to a further easing of interest rates in the United States and weaken again DOLLAR. Ultra-loose monetary policy with a cash injection could extend this trend. However, China, which claims victory as well due to the appreciation of its currency vis-à-vis the 'greenback' enjoys a 'yuan' undervalued relative to foreign CURRENCY, to flood the European markets of its products, thereby accentuating the relocation of its business to Asia and the African continent. In other words, China has practiced 'dumping'monétaire, that is to say deliberately undervalues ​​its currency to promote exports. The collapse of Europe and its unique MOTTO is one of the major consequences of this geopolitical and financial strategy. European economic growth is not at the rendezvous and this CONFIRMED by a slowdown in their economies and considerable public deficit.

Individual interest has prevailed over the collective stability. The "gap" gap between winners and losers is growing with very low interest rates displayed by central banks and results in reduced access to credit on the interbank market for households and businesses.

Unfortunately, there is no perfect answer. A rise in interest rates by the US central bank would sink the global economy and generate an immediate collapse of the European continent. A reassessment of 'yuan' push as well, exporting countries out of the market, and so provoke an unemployment rate dramatically high not to mention the social and economic impact in the countries concerned.

However, a sustainable revaluation of 'yuan' vis-à-vis the 'dollar' combined with an appreciation of the 'dollar' could remedy the situation in order to avoid a currency war that could lead to a devastating trade war. This is no longer the case! It is therefore regrettable that the lessons of the Great Depression of the thirties have not yet been drawn: at the time, the protectionist measures each country had much to amplify and spread the crisis.

At present, bankruptcy and probable explosion of the Euro in the coming years are likely assumptions that highlight the concept of the new world order is proving more than a conspiracy theory. This indirect takeover of the global economy by the collapse of the previous day CONFIRMS Europe and shows that the collapse of the euro would emerge, de facto, another currency that would dominate global trade by its exports and loans, 'yuan'.

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