Legend Says The World Is On Fire As Gold Surges And Trade Wars, Currency Wars And Financial Wars Heat Up
KingWorldNews.com
September 17, 2018
With the US Dollar Index trading lower, today a legend in the business told King World News the world is on fire as gold surges and trade wars, currency wars and financial wars heat up.
Gold: Trade Wars, Currency Wars & Financial Wars
By John Ing, Maison Placements
September 15 (King World News) – Amid the politics and symbolism, Mr. Trump has weaponized the US dollar causing it to soar but risks a borrowing shock for half of the world. Once tweeting the dollar is too strong, he now revels in its strength using it as a bully stick to remake the world order. Dollar strength has marked a dividing line between the United States and the rest of the world. In the Sixties, former French President Valery Giscard d’Estaing once complained that the “exorbitant privilege” of the world’s currency allowed the US to borrow more cheaply than it could otherwise, to consume beyond their means and, print money to pay its debts.
That special privilege also allowed the weaponization of the American dollar. In the politics of trade, Mr. Trump has leveraged the dollar’s role to make other nations pay attention to America’s financial hegemony, with the result, relationships with its allies are at a low ebb. Moreover, in using the dollar as his bully stick, he undermines its role as the world’s reserve currency. The stakes could not be higher. Donald Trump has tweeted, “Trade wars are good, and easy to win”. Yet this trade war already has morphed into a currency war, reminiscent of the Dirty Thirties. Financial wars are next. For a time, everyone thought Trump was all tweets and no action. And now equities, commodities and bonds are in danger of becoming collateral damage as the current global financial order changes under Trump and his tweets…
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