There's an article on Kitco that describes a situation that illustrates what I mean by the term "race to the bottom". The Japanese are weakening their currency. So, if Europe doesn't like this, their weaken theirs in response. Along comes another country or bloc of countries that will also do the same. What you have is competitive devaluations, all intent upon getting some type of trading advantage. But it doesn't work.
This is the mess we are in now. Nobody really knows what to do about it. Or, if they did, they are not implementing this. This policy is a failure before it even starts, but never mind that. Somehow, they all believe that it will be "different" this time.
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