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History was truly made last week.\u00a0 In a historic speech given by Guido Mantega, the Brazilian Finance Minister declared a new \u201ccurrency war\u201d to battle the overactive printing presses around the world.<\/p>\n
In full Mantega stated, \u201cBrazil has declared a fresh \u201ccurrency war\u201d on the US and Europe, extending a tax on foreign borrowings and threatening further capital controls in an effort to protect the country\u2019s struggling manufacturers.\u201d<\/p>\n
During times of recession, many countries attempt to devalue their currency in the short-term in order to give them a short-term advantage when competing against international markets.\u00a0 Brazil is one of the first governments outside of several middle-eastern countries to denounce the United States and Europe for their extravagant inflationary policies.\u00a0 It is important to note that it is a crisis of confidence that will eventually put an end to the inflationary policies of the United States, Europe, and several other major nations.\u00a0 This crisis of confidence will first start outside the United States and then finally after most of the world has lost confidence in the country\u2019s currency then that same confidence crisis will be transferred to the country itself.\u00a0 Therefore, the significance of the denunciation of the United States and Europe by Brazil cannot be underestimated.<\/p>\n","protected":false},"excerpt":{"rendered":"
History was truly made last week.\u00a0 In a historic speech given by Guido Mantega, the Brazilian Finance Minister declared a new \u201ccurrency war\u201d to battle the overactive printing presses around the world. In full Mantega stated, \u201cBrazil has declared a … Continue reading