A currency war with China?
Your guess is close, except that it’s U.S. bankers and investors joining in a foreign currency war against the U.S., which will harm U.S. exports. With the tapering talk and other propaganda, they drove down some currencies of trading partners that we already have extreme trade imbalances with. We don’t have the production to pay so much debt used to buy foreign products and keep so many anti-competition government offices going, but they smell blood and want more. Here’s the real news behind the noise.
http://blogs.wsj.com/moneybeat/2014/01/24/will-fed-pause-on-jittery-financial-markets/?mod=WSJ_hpp_sections_markets
Will Fed Pause on Jittery Financial Markets?
Wall Street Journal
By Cynthia Lin
Jan 24, 2014
“If tensions across financial markets intensify, could it throw a wrench in the Fed’s tapering plan?”