| | China looks like it is doing a full court press on de-dollarization.
They just demanded BHP Austrail's huge iron ore exporter to China to use Yuan, and it applied even to ships mid ocean! So they are serious
And many other nations, especially BRICS nations are now using the Yuan, or their own currency in place of the dollar.
Trump, of course, only having the tariff hammer, told the BRICS nations if they engaged in de-dollarization he would put 100% tariff on them.
They are ignoring him, and engaging more often than ever now using the Yuan e.g. India, Brazil, and Saudi Arabia.
If the dollar tumbles, our debt will be tough to finance because interest rates will rise, and nations will stop buying our bonds.
Trump has gotten the entire world to be engaged in chaotic transactual changes in trading partners, and working against us e.g. Canada, Australia and Mexico doing deals with China!
So ironically, it is hurting us because the world is pissed at us, and boycotting us where they can.
The world sees Trump both bullying and extorting them using US economic power.
Lutnik told Canada straight out, we need to be first in auto production, and you must be second. He said that, and it implied he wanted car production to move to the US.
Which is a huge insult and nuts!
But Canada has cards to play e.g. potash, rare earths, nickel, copper, aluminum, and power to the north east.
Anyway, as the dollar falls, inflation and interest rates will rise, and the GDP may fall, and how will we then finance our debt?
QE, which will be a disaster.
I think the world is looking right at this situation, and so selling US bonds and buying gold and silver! |
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