The ongoing currency wars, which began with the 2010 devaluation of the US dollar, could last for a long time, as the World continues to face a global depression, financial expert and author Jim Rickards told Radio Sputnik.
China's exports declined in 2015 and its stock market collapsed more than 25 percent. The consequences of this could be dramatic for the global market, according to Rickards.
"If you reduce Chinese growth by even 30 percent, that's 3 percent of global GDP. Global GDP is only growing at about three percent, so you could take global growth almost to zero," Rickards told Radio Sputnik.
According to Rickards, the US Federal Reserve's tightening policy is behind the Chinese currency decline, making other currencies weaker against the dollar.
Rickards added that it is not surprising that the Fed did not raise rates because of this, as the currency market is tight as it is.
