I don't know if I've ever heard such a blatant contradiction as the response of G-20 finance ministers to the idea of there being a currency war going on.
The silly comment by the managing director of the International Monetary Fund, Christine Lagarde, where she said this: "There's been lots of talk of currency wars, and we have not seen any such thing as a currency war," underscores the lack of respect for those who understand what's going on with money policy around the world and the results the stimulus actions produce.
Even the idea of saying nothing to or about Japan's money policy, where the yen has plunged against the U.S. dollar by 21 percent since the middle of November, 2012, reinforces the fact there is a currency war going on.
After all, if the G-20 publicly spanked Japan, they would have to answer as to why they're encouraging more stimulus at this time.
Lagarde all but said there is sure to be more monetary easing in the euro zone, based upon the interest rates in the region are higher than those of competitors like Japan, U.K., and the United States. But there is no currency war going on. No sir.
There have been references to the dishonest statement from the G-7 last week where it attempted to make a difference between a country specifically focusing on a specific currency level and monetary easing in order to boost domestic economies.
Why is that a difference? It isn't. It's saying the same thing using different terminology.
How come they're attempting to make this type of murky but dishonest comparison? You can be sure more stimulus is on the way in response to the ongoing stimulus or money printing, and that means there is a currency war between countries attempting to be sure their exports are competitive with other countries.
If you were to believe the official explanations, the results as to the behavior of the currencies against one another will be the same, but we just aren't going to call it a currency war because it would make the central banks appear to be what they are - government tools being used as economic weapons of mass destruction.
And if you're wondering which country it is that instigated this war, it's the United States as it continues to create money out of thin air at unprecedented rates.