When Brazil Finance Minister Guido Mantega recently warned of a "currency war that is turning into a trade war," he wasn't far off the mark - at least as far as Latin America is concerned.
In that region - in the last two weeks alone - at least three countries have taken steps to prevent their currencies from appreciating against the U.S. dollar.
If you're a U.S. investor with no Brazilian holdings, you probably wouldn't think you'd have to worry a whole lot about what Brazil is doing to keep its currency - the real - from appreciating.
But on that point, you'd be wrong.
In fact, as Mantega warns, the fallout from a currency war could actually be quite severe - and global in reach. The games that governments are currently playing in currency markets could cause countries to set up trade barriers against imports. And that could bring about the end of the truly global economy - a "de-globalization" that would steal our current standard of living and thwart a return to prosperity.
Fortunately, there is a solution.
To understand how we can head off this "currency war," please read on...