Failed attempt to stem currency wars

Headline tells everything.

Telegraph: IMF fails to strike deal over currency frictions

The International Monetary Fund on Saturday night failed to reach agreement on tackling mounting global "frictions" over exchange rate policies despite US calls to deal with the issue more forcefully.

New York Times: IMF doesn't press China on currency

The world's financial leaders failed on Saturday to reach agreement on how to contain an escalating currency dispute that has threatened to undermine global cooperation on economic recovery.

Christian Science Monitor: IMF leaves the question unresolved: Can world avert harmful "currency war"?

World financial leaders agree on the problem. They just don't have a ready solution to the risk that the global economic recovery will be undermined by nationalistic elbowing over exchange rates.

Nobody had even a slight anticipation of cooperation reached at the IMF meeting on how to stop currency war now under way among major economies. So, this result should be no surprise. Even at the G20 meeting later this month, it would be disastrous to expect that the world's major economies cuts an agreement to stem the tide of currency devaluation. No new Plaza Accord, whatsoever.

No countries can escape the responsibility of policy bungle during the early 2000's. Over-consumption supported by the ultra low interest rate and housing bubble in the West held sway in the world. Don't forget that emerging economies took full advantage of it to export their way by depreciating their currencies and buying US bonds, hence lowering the US interest rates. The US is in no position of scolding China for its currency policy.

China, the second largest economy in the world surpassing Japan, shouldn't be an eternal victim of the evil West and Japan. Now is the time to take a responsibility of stewarding the world economy. But as is shown in the Nobel Prize for Peace mess, it would be far away from that position, unfortunately.