Brazil Believes The 'Currency War' Is Intensifying

Brazil Declares New ‘Currency War’ -- Financial Times

Brazil has declared a fresh “currency war” on the US and Europe, extending a tax on foreign borrowings and threatening further capital controls in an effort to protect the country’s struggling manufacturers.

Guido Mantega, the finance minister who was the first to use the controversial term in 2010, said the government would not “sit by passively” as developed nations continue to pursue expansionary monetary policies at the expense of Brazil.

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Update #1: Brazil currency wars: the sequel -- Financial Times
Update #2: Brazil slams rich countries over 'currency war' -- Reuters

My Comment: Wars and conflicts between nations sometimes does not involve weapon systems as we know it .... a point that Brazil and many emerging economies can attest to.The flood of easy money in the U.S. and Europe has had a devastating impact on emerging countries like Brazil. Unable to compete, emerging markets have now lost their markets overseas and are suffering the consequences of these loses through high unemployment and manufacturing shutdowns. This is a currency war, and while the buildings will still be standing and the trains will run on time .... there will be millions of victims through unemployment and lack of opportunity.

My prediction .... Brazil and other emerging countries will (in the beginning) be successful in countering the developed world's monetary measures .... but this is a short term success story. Countries like Japan, the U.S., and the E.U. .... combined they rule the world's economy .... and in the end their sheer size and economic strength will dictate where this "currency war" goes .... which in this case will be to favor themselves.