If you were hoping this week wasn’t going to start out with an all out overt currency war, you’re shit out of luck. As I’m sure most of you know by now, the Chinese Yuan collapsed against the Dollar late last night and now sits at a level it hasn’t seen in quite some time. Many, including Donald J. Trump, believe that this depreciation against the Dollar is an overt maneuver in the ongoing trade war between the US and China as China races to make its exports as cheap as possible.
Many have been arguing, myself included, that the world has been in the midst of an ongoing currency war for more than a decade now. When you have basically every central bank around the world printing money and lowering rates almost in lockstep fashion it’s very hard to deny this. The thing with currency wars though is that they’re supposed to be fought on the meta layer. One never balks and admits that they’re engaged in economic warfare. The generals of currency warfare simply act, maneuver and posture in certain ways depending on what “the enemy” is doing. Devaluing their currency for reasons that have to do with some economic target that has been thrown on the wall.
The admission that one in actively engaging in a currency war is a huge no-no. There is somewhat of an honor code between warring factions that the fact that they are engaged in this type of war should never be overtly mentioned because it can create a very slippery slope that ends in a decay of confidence in the whole monetary system. Did Trump just break this honor code?
We’re entering some very weird, uncharted territory, freaks. This is Bitcoin’s time to shine.
Still not a big pool guy.