11/15/2010 12:54 pm ET | Updated May 25, 2011

How the Fed Started an Economic World War: Let the Currency Wars Begin

In an effort to jumpstart the economy, the U.S. Federal Reserve has decided to buy at least $600 billion of U.S. treasuries. The idea is that this monetary program will devalue the dollar and make U.S. exports cheaper and foreign imports more expensive. Of course, the real target of this policy is China, which the United States has accused of currency manipulation. Since the American government has been unable to convince the Chinese to inflate the value of their currency, the Federal Reserve has decided to take matters into their own hands.

Under the benign name of "quantitative easing," we may be witnessing the first stages of what will be called World War III. However, in this war, there will be no bullets or armies; instead, currency speculators will swoop into economies and inflate asset bubbles only later to pull out and leave these economies destitute. The first move will probably be a massive buying spree of Chinese and Brazilian currencies, which will be followed by some type of monetary retaliation. Meanwhile, Europe will sit on the sidelines because their central banks cannot conjure money out of thin air.

As the currency mob moves to Turkey, Thailand, and other emerging markets, the entire global financial system will be undermined, and a new class of multinational speculators will control the fate of entire nations. This massive instability will make terrorism seem like an easy problem because there will be no enemies or allies in this global war: no one will even know that it is happening until it is too late.

One has to stand back and ask who controls the Fed and how did they get so much power. One answer to this question is that no one controls the federal reserve, and due to the financialization of the global economy, there is no army that is as powerful as this secret banking society.

If we follow all of these global trends to the logical conclusion, most of the money in the world will soon be held by a small group of investors who will hold no allegiance to any nation or ideology. Like a virus, the currency gamblers will proliferate through integrated networks without any foresight or hindsight. Let us hope that I am wrong.