QE2 risks trade war with China says Jim Rogers

China expert and legendary US investor Jim Rogers is worried that QE2 is an opening shot in a trade war that will cripple the US economy. Certainly inflating global commodity prices and devaluing the US dollar is not to the benefit of China whose own economy is overheating.

There is a real estate bubble in China similar to Dubai two years ago. Arabian readers will know what happened next.

Raising interest rates a week or so ago showed that the Chinese mean to strike back against US protectionism. Capital controls will have unintended consequences. There is a currency war brewing here. This is what happened in the 1920s and 30s.