Commentary The biggest mistake the Biden administration can make is to follow the siren calls of its competing economies to massively devalue the U.S. dollar, print money endlessly, and go full-MMT (Modern Monetary Theory), which is neither modern nor a theory. Destroying the currency’s purchasing power to finance bloated government spending has been used for centuries with the same final effect: collapse of the economy. After an unprecedented increase in debt and government spending, many countries face the almost inevitable prospect of more currency devaluations, which has triggered pre-emptive responses all around the world. A Currency War? What is a currency war? A currency war is a conflict between nations trying to artificially devalue their domestic currency in order to be more competitive internationally but also to hurt their opponents—using the currency to make the other nations less competitive while at the same time weakening their power. It’s based on …
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