Are we on the verge of another “World War”? What will trigger it? Could a Global Currency War be the fuse to trigger World War 3? In 1934, United States President Franklin Delano Roosevelt outlawed the private ownership of gold. After confiscating billions in bullion, Roosevelt shocked the world by revaluing it. The cost for an ounce of gold, previously set at $20.67, was suddenly $35. Overnight, Roosevelt devalued the dollar by 69 percent. The president told the country that it was a radical effort to stimulate America’s economy. A cheaper dollar would make America’s exports less expensive and help American companies sell more products to the rest of the world, he said. More money would flow into America, and more jobs would be created. It did those things. And it also marched the world another giant step closer to war. From the world’s perspective, President Roosevelt’s actions felt like a full-on economic broadside designed to steal a bigger chunk of a stagnating global economy. To the world, it was another—albeit much bigger—salvo in an ongoing global currency and trade war! And it responded in kind.

Today, the economic guns of 1934 are thundering once more. The world’s economy is mired. China, Europe and America face sluggish growth. Commodity prices have cratered. And demand for materials has been blown to smithereens. Meanwhile, global debt is skyrocketing. And stock markets are rattled. Desperate nations are doing everything they can—including destroying their currencies—to stimulate their economies and keep disruptive internal social forces at bay. Could we really be headed toward world war again? The parallels are ominous. It is in this current tense climate that, on August 11, China surprised the world by initiating the greatest single-day devaluation of the yuan in China’s history. And that was just the warning shot. Over the next days, the yuan fell at an unprecedented rate—blowing multi-decade records for depreciation. The move was especially significant because, for the past several decades, China has made sure the value of the yuan closely tracked the dollar. FULL REPORT