Sorcha Fall (David Booth) is a known fabricator with a gift to connecting dots.
A grim Ministry of Finance (MOF) report circulating in the Kremlin today warns that Venezuela’s “nuclear option” crashing of its currency yesterday is a “clear signal” that the Western banking systems “house of cards”, erected in the aftermath of the 2007-2008 Global Economic Crisis, is in “total collapse” with the expected final outcome to be an “apocalyptic” crash of the US economy no later than April.
According to this MOF report, and what US financial experts described as “what lobbing a nuclear bomb into a currency war knife fight looks like”, Venezuela devalued its currency by an astounding 46% in the latest round of what is being described as the worst currency war our world has seen since the 1930’s, and which plunged the globe into total warfare.
Currency war, (World War C) also known as competitive devaluation, is a condition in international affairs where countries compete against each other to achieve a relatively low exchange rate for their own currency. As the price to buy a particular currency falls so too does the real price of exports from the country.
Imports become more expensive. So domestic industry, and thus employment, receives a boost in demand from both domestic and foreign markets.
However, the price increase for imports can harm citizens’ purchasing power. The policy can also trigger retaliatory action by other countries which in turn can lead to a general decline in international trade, harming all countries.
Brazilian Finance Minister Guido Mantega, widely credited with coining the term “currency war”, further warned yesterday that the global situation could get even worse if Europe joins the fray, and which this MOF report warns the will have to do in the “very near future.”