In a wider historical perspective, the current currency war is the latest conflict in a series of acute crises of the modern international monetary system. In a world of national monetary regimes based on fiat money without physical anchors, domestic monetary instability automatically transforms into exchange-rate instability.
This world-renowned merchant seeks no fame for his business achievements.
Higher food prices set off the revolutions in Tunisia and Egypt and the mass protests in countries like Algeria, Jordan, Yemen, Bahrain, and Iran. People in these countries buy more unprocessed foods and spend a much higher percentage of their income on food, so they have been severely impoverished by Bernanke's QE2.
In order to understand the tragedy of the euro and its history, it is important to be familiar with the two diverging and underlying visions and tensions that have come to the fore in the face of a single currency.
Fergusson presents a compelling argument that the central bankers of Europe did not believe that the quantity of money had anything to do with the price level. And I suppose you think that our modern Fed rulers understand at least this much.
In this small gem of a book Professor Bagus has given us much more than an explanation of why the euro will fail the common man in Europe.
Any diamond that enters the market must be certified by the WDC; those that aren't are considered conflict diamonds, and the individuals involved are prosecuted. Regulatory authority is used to control the global supply and price.
