Brazilian Finance Minister Mantega has just blasted the Fed’s QE3 policy for setting off “Currency Wars”.
What he means by this is: The Fed has prompted every country to attempt to weaken the value of their currencies in order to boost exports.
The reason Mantega is furious about this is that he believes it dangerously boosts inflation, especially in emerging markets like his, Brazil.
He’s made this charge before: In August 2010, the last time the Fed started to embark on QE, he blasted it for setting around a series of central banks weakening their currencies to boost exports.
We predicted two days ago, that with the Fed, the ECB, and the Bank of Japan all announcing easing within days of each other, that the term would soon be back.
We recently made a video explaining what the concept means.
Produced by Daniel Goodman