“A global currency war is raging, and the results may not be pretty, says Forbes contributor Robin Lewis.
In the United States, exports may benefit temporarily, but not for the long term, he writes.
And overall, “what if this time is different from all past deflationary and inflationary cycles? What if the international monetary system destabilizes and collapses, and inflation does not rise sharply?” Lewis says.
“Just as the Fed’s quantitative easing was supposed to juice our economy, but instead, simply juiced the traders, why would anybody believe that the central banks around the world could stop the enormous forces being set in motion in” so many countries.
People around the world may come to view paper money as worthless, Lewis writes.
The result could be “at best, a global Japan-style deflation, at worst, a worldwide depression,” he says. “Then, maybe we’ll go back to bartering, where borrowing, debt and interest rates will not exist. A time when the value of goods and services actually meant something. Hmm.”
Fears of a messy end to global currency wars have been a current hot topic….”Twitter