Bull in the china shop
President Trump is revealing himself to be the most destructive US president in history. It is no wonder that foreigners and even some Americans are now fleeing the dollar into gold.
ALASDAIR MACLEOD
For decades, the fiat dollar has distorted markets, and it is no wonder that the heavily suppressed silver market is playing catchup.
But silver is not alone.
The entire commodity complex comprising base metals, agriproducts, and raw materials have been suppressed by traders being fooled into believing that the dollar is money.
The illusion is being revealed for what it is, and markets are now gaining the upper hand.
It was an illusion that was going to end anyway, but along comes President Trump, exhibiting signs of leadership megalomania without the wisdom that tempers the actions of other leaders in a similar position of power.
His capriciousness over trade tariffs knows no bounds.
His attacks on the sovereignty of other nations in contravention of international law, which admittedly is not recognised in US law, has moved from covert regime changes to outright kidnapping of a country’s leader, and the bombing of others.
Only this week, Trump has excelled himself in leadership stupidity.
He has attacked the Fed, which as the US’s central bank is independent from government policy.
It is over a manufactured excuse over spending on a new Fed building, but everyone knows that Trump wants to force the Fed into reducing interest rates, keep reducing them, and to make sure his spendthrift ways can be funded.
As a property developer, Trump is a spendthrift who simply wants interest rates to be as low as possible.
That solves everything in his book. And when Jay Powell ends his term in a few months’ time, we all know that his replacement will be an inflationist, a patsy for Trump.
In the process he is making enemies of the entire foreign investment community, who with their government agencies have over $40 trillion exposed in dollars and underlying financial investments.
Thanks to Trump, the most over-owned currency now has no friends.
It is not surprising that the gold price is shooting ever higher:
Gold is reflecting a growing loss of faith in the dollar’s future, the signal being that as faith in this fiat currency evaporates it will become worthless.
Trump’s attacks on Powell confirms just that prospect which is now probably certain.
Trump is acting like a bull in a china shop, destroying the dollar, the US economy, and those of America’s sycophant nations.
The Fed is going to go into rapid print mode in obeyance to this monster of a president, when there is no one to stand up to him.
Continue to avoid this disaster and all its knock-on effects by getting out of credit which includes fiat currencies before the entire system fall apart, courtesy of the Donald.
What was likely to take several more years can probably now be measured in no more that one or two.
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