I really don't understand all this mess about currency wars. I know that the basic idea is that if a nation currency is too strong, it's bad for its industries because it gives them a competitive disadvantage on international markets.
But to me this just doesn't make sense. How can someone complain that something is "too cheap" ? If someone makes very cheap stuffs, I won't complain : I'll just buy it. I'll even stop producing and I will borrow money if I need to. If a money is really "too" cheap, then it's an arbitrage opportunity and one just has to buy it.
The problem is that social-democracies and all its regulations stop the market prices from adjusting downwards. If you had a free market it would have a strong currency. If, for example, some country tried to devaluate their currency to decrease the real wages of their workers and make them poorer to allow the exports of their industries to be more competitive, the free market nation would react by lowering prices and wages, and if the workers refuse to accept because they can find better options, then the industry would have the option of trying to automate the task or accept the gift of the foreign country and use their labor as cheap labor, while the free market country workers are doing better payed jobs.
But since social-democracies and their endless regulations dont allow for prices (including wages) to adjust downwards, this process can not happen. And the only option left is to counteract also devaluating through inflation, which on top of making anyone earning a wage poorer, discoordinates the market and produces bubbles. Social-democracies are mercantilists economically. Its a loose-loose situation for everybody, but its the only way the elite have to destroy the debt while keeping the system in place.
Its so stupid that in the XXI century we are still following the same mercantilist policies as the XVII century monarquies its mind blowing.