Currency manipulation as a tool in modern warfare between states is explored in the book" Currencies Wars" by the great gold pusher James Rickards. A very complex confusing book only the most acute economist would enjoy. The United Sates is facing serious threats to its national security thanks to our leaders insistence of putting a global trade network that has done little except made a few people prosper in this country and made taken more people off of their historic lands in other parts of the world.
Having gold backing up currencies is something that James Rickards and other preach and he talks a bit about the classical gold standard period of 1970 to 1914 before the federal reserve was created. A series of panics helped create this creating that many put blame for the worlds instability. Rickards has done good research to explain the currency wars of 1921 to 1936 that saw rise of fascist dictators through the creation of unstable economic conditions of devalued currencies. Many Germans were financially ruined through this time period as the weak government was unable to stop hyperinflation that had a devastating effect on the nation. The role of Franklin Roosevelt and Richard Nixon in combating currencies and in fluctuations of combative valuation is explained through this book as the second currency battles was waged from the late sixties to late eighties throughout the world. There are many countries that battles and continue to question the role of the dollar on the worlds markets and indeed we are seeing a battle to retain the worlds gold reserves from many nations who think the dollars time has come. Richard Nixon's role of preventing the dollar from being a hostage to international speculators. The current currency war between the Yuan and the dollar really is shaping up to be the next major economic conflict.
The peoples bank of China strictly control the flow of the Yuan helping to make this currency much more stronger than the dollar and makes its export industry strong and cheap for foreign buyers. this ability has done more damage to the American economy and helped spiral US government debt more than anything spending on domestic necessities that Republican law makers want so desperately to cut. The fact is that industrial nations can barely keep afloat and only a subsidized U S military has enabled Europe and Japan to keep their old age non-working pension population survivable and our military energy ventures need to come to an end. Currency wars have already been going on for years and have helped avoid real warfare between nations. However the days of U S military protection for global trade are ending and nations will need to settle their disputes with their neighbors without US banks and taxpayers supporting these nations and threatening the protection of these overspending nations. Rickards understands the problem is that banks are now too big to fail and they need to be broken up and until they are we are doomed to follow the same progress japan has been following in the past two decades with the exception we allow many more immigrants to undercut the people who are still working age in the United States. This is what is putting us in debt and Rickards needs to focus more on this than the valuation of different currencies and need for a gold stabdard.
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