The year 2015 has introduced the phenomena of currency wars, devaluation, negative interest rates and central government stimulus policies aimed at fighting deflation and creating competitive advantages of one country over the the next through fiscal engineering.
This beggar thy neighbour policies implemented by central banks of Canada, Switzerland, Denmark, the Euro Zone, Australia, Russia, India, Singapore and Sweden may provide short -term advantages, but it is logical that if all countries engage in this behaviour simultaneously, there can ultimately be no winner. The U.S. implemented the first large-scale stimulus programme with its quantitative-easing and near 0% interest rates. Japan followed next and now it is the turn of the EU. The world's largest economy, China, might be the next huge player to devalue its currency, a truly frightening prospect. The United States is threatening to punish other states with import tariffs if it can be proven that an exporting country is deliberately weakening their currency to make its exports cheaper and the prospects for global trade war is increasing by the day.