The dollar became the main competitor of all world currencies
U.S. President Donald trump don’t like around the world and, in General, is for what. After the Second world war (and especially after the collapse of the Soviet Union), the United States has done a lot to become a leader of global peace based on the freedom of trade and, of course, the us dollar. In this world the measure of financial success is the capitalization of the companies and banks. The USA have always respected their partners, at least for the G7.
The global economy, formed in the end of the last century, is the result of several technological revolutions: the development of the Internet, cellular communication, various financial technology and as an international division of labor. However Donald trump thinks in terms of the nineteenth century and is ready to bury the global economy together with the global leadership of the US and possibly the dollar as the world’s sole reserve currency.
Sanctions, settlements in national currencies, trade barriers and politics that dominates the economy is our new reality. A trade war between the US and China may have unintended and even tragic consequences for the world economy.
The fundamental threat to the United States is an American government debt, especially against the background of rising fed interest rates. And it is possible that Donald trump will try to solve this problem. This idea was actively discussed in financial forums during the time of the collapse of Lehman Brothers and the financial crisis 10 years ago: enter the single currency for the United States, Canada and Mexico, as well as hard debt restructuring for the “bad guys”. In this question the main “bad guys” – no, not Russian, and Chinese.
By the way, what will be the exchange ratio new North American currency to the dollar, hard to say. The forums wrote that for the Americans, but for foreigners, the coefficient can be different, even one to ten. This scenario could become a reality if, of course, the collapse of the overheated, according to many, the U.S. stock market or the debt crisis of the non-financial sector will not end for Donald trump’s impeachment.
The situation in fact deserves serious attention. The growth of return on bonds makes stocks not particularly attractive asset in the eyes of investors. Especially high risk in overvalued securities, for example, Facebook. Sale of shares in the United States cause the collapse and perhaps even the collapse of stock markets around the world.
The previous President Barack Obama and the fed in 2009 saved the global economy, however, trump this clearly will not do. It is obvious that in 2018 Donald trump plays against all, and the dollar became the main competitor of all world currencies and assets on the background of trade wars and geo-economic
confrontations. In any case, the volatility in all major markets is guaranteed, while the volatility is the bread of speculators. A good excuse to make money.
The Director of analytical Department,