# China Prepared for Currency War



## k0xxx (Oct 27, 2011)

China "fully prepared" for currency war: banker

*But China "is fully prepared", he added.

"In terms of both monetary policies and other mechanism arrangement, China will take into full account the quantitative easing policies implemented by central banks of foreign countries."
*
This was a short news article that was linked to by the Drudge Report. Japan, America, and several other countries are embroiled in the opening skirmishes of a Currency War that threatens to entangle much of the developed world.

The US is currently locked into quantitative easing, in an effort to stimulate the ever softening economy without raising interest rates. The US debt has grown so large, that should interest rates be allowed to climb to somewhere around 5 or 6 percent, it would take the entire years revenue of the US government just to service that debt. The US is going downhill fast and there is a mighty big cliff coming. All we are doing now is standing on the breaks in an attempt to slow our speed towards that cliff, but our breaks are getting near the point of failing. Going over that cliff will not be pretty.


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