The normal conduit is currency adjustment, which has the effect of devaluing the external indebtedness of deficit nations and clawing back lost competitiveness. But that cannot happen within the eurozone, while the mercantilism of Chinese economic policy prevents it in the trading relationship between America and Asia too. The same sort of currency wars that plagued the interwar years are already fast establishing themselves. Horrified by the effects of its safe haven status on industrial profitability, Switzerland has promised to print as much money as it takes to depress the Swiss franc to more tolerable levels.