Saturday, October 9, 2010

World Currency Dispute not resolved

 
Begin quote from above business news article:
Global finance leaders failed Saturday to resolve deep differences that threaten the outbreak of a full-blown currency war.Various nations are seeking to devalue their currencies as a way to boost exports and jobs during hard economic times. The concern is that such efforts could trigger a repeat of the trade wars that contributed to the Great Depression of the 1930s as country after country raises projectionist barriers to imported goods. end quote.

This is what anyone with any knowlege of the Great Depression is worried about. The inability of world leaders to agree could  cause a world trade War with most countries desperate to regain economic share worldwide during these internationally destabilizing times we live in worldwide.

This is not good news for any country even China because it will mean China will have to sell more goods to its own people as other nations set up protectionist barriers. Nations now have no choice but to protect themselves with import tariffs on all or most imported goods worldwide. This could get internationally ugly.  The last really big trade war's resulting aftermath  was World War II. Only now we have nuclear weapons so it remains to be seen how nations keep their people from rioting through this since the last time the resulting  wrath was channeled into a world war eventually. So it is my hope that more international meetings occur to continue to try to resolve this issue before it goes to the next level.
 
The following is another related article I wrote about this problem.

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