In response to:

China "Fully Prepared for Currency War" Says China's Central Bank Deputy Governor

Paulus Textor Wrote: Mar 03, 2013 3:38 PM
The concept of a currency war is truly bizarre, but that's the modern world. In such a "war," countries try to outdo each other in DEBASING their own currencies. In doing so, the quite openly RIP OFF the common citizen, for the benefit of large exporting countries. In what way are the commoners ripped off? By the fact that their debased currency buys less and less, ESPECIALLY from foreign countries that don't debase as much. A currency war is the ultimate "race to the bottom," with all parties striving to cheapen their currency as much as possible. The tipping point will be when smart traders stop accepting certain currencies. Why should they, when they know those currencies will be worth less tomorrow than they are today?

Given the world's central bankers are already in a currency war, a policy statement made by a deputy-governor of China's central bank should not come as a surprise (except for the fact it was publicly and bluntly stated).

Please consider China well-prepared for currency war: official.

China is fully prepared for a looming currency war should it, though "avoidable," really happen, said China's central bank deputy governor Yi Gang late Friday.

A currency war could be avoided, Yi said, if policymakers in major countries observed the consensus, reached at the recent G20...