Oh the german finance minister said it was crazy?  Why would he care what happens to the USD.  Oh because it'll RUIN the germany economy if the USD is allowed to slide into nothing. 

Huge difference between people saying the US is crazy, and ALLOWING the US to actually execute it's plans. HUGE difference.

You appear to suffer from easy media manipulation.   You seem to think because a country is ruining it's currency, that others will let it go unchecked. 

There are really 2 currency rates as I see them.  The value which a government can get for it's currency and the value that other countries won't let it slip below.

During the Clinton years, he let it rise and just go wild.  Higher the better for him.  Other countries weren't going to do anything -- this helped them.

Bush wanted more manufacturing and a lower rate. He didn't push for the same currency values.

Obama is with Bush, pushing it lower and lower in hopes of gaining manufacturing and other benefits from a lower dollar.  However, other countries don't like this.

Now there is a point where currencies cross over into a dangerous zone, and put real hurt on other countries.   We're at that rate now.  That is why there is a currency war happening.

If the US can produce a widget for $10 global currency
If Germany can produce the same widget for $50 global currency

There is a problem.  It's clear to us.  There is *nothing* that German company can do to compete, and with a 5:1 ratio, he can't win.  He's going out of business.  This part of the currency has to do with production.  How many widgets can you make, and what does it cost to make over there.   The currency should then even things out.  We're at that point.  Other countries are trying to even things out to prevent real financial issues in their countries.

I believe Brazil is at that point too.  If their currency gains any more strength, their widget production costs, even with the high tariffs in place, just won't compete with goods coming from a country that is devaluing it's currency.   Brazil has a huge amount of manufacturing.   If China and others can devalue their currencies enough, or elevate the Real high enough, then they can under cut any manufacturer in Brazil, regardless of their productivity.   Brazil can't let this happen.

From my standpoint, the shelves of Brazils stores are fillling with Chinese goods at a rate that is just too fast.   It's because they're playing on an uneven field.   Since Chinas currency is locked to the USD, Brazil has to force their currency down, in order to protect their country.

The alternative is that the country will start faltering, won't buy as much and it will push it's currency down by itself as it enters a recession.

Here`s Mantega, again, talking through both sides of his mouth.
Seems to me he has been saying the same song and dance for the last 5 years that I can remember.

http://www.bloomberg.com/news/2011-04-07/brazil-has-array-of-tools-to-stem-currency-gains-mantega-says.html

Apparently Brazilian CEOs know what to do with all their dollars.
Brazil's Cash Rich Companies Look Abroad for Acquisitions

Acquisitions right now are a great way to lock in your currency profits.

Lots of companies are hoarding money and have stock piles of it.  We'll probably see some good M&A over the next year or two.  Why invest in an unknown company, when you can buy another company cheaply that is already succeeding?

Like wise, if the currency flips for any short time, I would drop money into Brazil and buy property before other markets have a chance to adjust.