There is an emerging “currency war” in the global economy. We have feared this development since the slowdown in various economies in 2008-09. Different nations have tried various strategies to stimulate their economies, and most of their efforts have failed. One sure-fire way to stimulate exports is to devalue one’s currency: as the value of the currency declines, a state’s exports become cheaper and global demand for those exports will pick up, stimulating the economy. The problem with this strategy is that other states will then try the same thing, and everyone ends up with a weaker currency and the demand for exports will then settle down at the stagnant level. Japan is furiously trying to devalue its currency (the Yen has declined by 20% in the last few weeks) and today Venezuela announced that it will devalue its currency. The last time we saw a global currency war was during the Great Depression, and the consequences of the war was a significantly weakened global economy.
The Irish response to the financial crisis was to accept harsh austerity programs with very little dissent. Other countries, like Italy, Spain, and Greece, have witnessed large protests. It now appears, however, that Irish patience is wearing thin. Large protests have occurred and the Irish people are demanding a return to economic stimulus. Whether the government has the will to follow this path remains to be seen.
The drone controversy continues, and the debate outside of the US is quite one-sided (I imagine that will change as other nations develop their own drone technology). The British press has been particularly harsh on the Obama Administration’s policy. The Guardian, a solid lefty newspaper, published an op-ed piece on the policy from the perspective of the laws of war.
World Politics News 
Leave a comment