Via Drudge, CNBC is announcing a currency war.
Not quite, but QE2 has set sail in Japan.
Japan has set the stage for a potential global currency war, announcing plans to create money and buy bonds as the government of Prime Minister Shinzo Abe looks to stimulate the moribund growth pace.
You don't want to do too much of that, lest you get run-away inflation. Devaluing your currency is helpful somewhat in trade calculations, but if everyone eases, the economy sneezes over the funny money. The loose-money Abe lobby seemed to have worked.
China has been nortorious as of late in keeping the yuan low, so there's pressue to race to the bottom. If they're not careful, the two might be fighting over the Marianas Trench like they're fighting over those islands in the East China Sea between them.
The only thing missing is for the US to flip a trillion-dollar coin down the trench to keep them company; have you ever tried to break a trillion dollar coin at 7-11?