Currency Wars Threaten A New Depression

"We could really move into a depression globally," warned Mark Mobius, executive chairman of Templeton Emerging Markets Group, in interview with CNBC.  He says that rising tensions amid an escalating global currency war has sparked talk of capital controls, but such a move would be dire for markets,

He added: "I think the linchpin of this is China and the U.S. - if they can come to some kind of agreement, then I think we could see that softening up and tempered,"

"I think the Chinese are beginning to realize that," adding that he expects a gradual appreciation of the yuan as it would "genuinely have a beneficial impact on China".

"China is becoming a more and more domestically-oriented economy. They're going to de-emphasize exports... So a strong currency and of course moving towards a major world trading currency is definitely in the cards,".

"You can be trading outside the market even though there are capital controls," "This was the case with Argentina for example in the recent past and in other countries. That's one protection."