From Birch Gold Group
The new Trump administration is calling out several major U.S. allies with claims of currency manipulation, but the accusations come with a risk Americans need to understand.
The finger pointing started with China, but now Japan and Germany are under fire as well. Whether there’s truth to the claims or not, economists fear the Trump administration may be on the brink of starting a currency war that puts the entire global economy in jeopardy.
It is my sincere desire to provide readers of this site with the best unbiased information available, and a forum where it can be discussed openly, as our Founders intended. But it is not easy nor inexpensive to do so, especially when those who wish to prevent us from making the truth known, attack us without mercy on all fronts on a daily basis. So each time you visit the site, I would ask that you consider the value that you receive and have received from The Burning Platform and the community of which you are a vital part. I can't do it all alone, and I need your help and support to keep it alive. Please consider contributing an amount commensurate to the value that you receive from this site and community, or even by becoming a sustaining supporter through periodic contributions. [Burning Platform LLC - PO Box 1520 Kulpsville, PA 19443] or Paypal
-----------------------------------------------------
To donate via Stripe, click here.
-----------------------------------------------------
Use promo code ILMF2, and save up to 66% on all MyPillow purchases. (The Burning Platform benefits when you use this promo code.)
Trump Staff Leaves Tradition at the Door
Historically, no one other than the U.S. Treasury Secretary is expected to comment on the valuation of the dollar or that of other nation’s currencies. But just as with so many other things, the Trump administration is leaving tradition far behind.
Trump himself has already made several public statements threatening to brand China a currency manipulator. Now he’s making similar comments toward Japan, and one of his top advisers is doing the same with Germany.
The Financial Times writes:
Shinzo Abe, Japan’s prime minister, complained on Wednesday after Mr Trump attacked China and Japan for “play[ing] the devaluation market”.
In response, Mr Abe told the Japanese parliament: “The kind of criticism they are making of yen manipulation is incorrect.”
The previous day Angela Merkel, Germany’s chancellor, denied that Berlin was seeking to influence the valuation of the euro — after a top Trump adviser in an interview with the Financial Times accused Berlin of exploiting a “grossly undervalued” euro.
Why a Currency War Today Is Especially Dangerous
Trump has already gone on record saying he thinks the dollar is too strong. An expensive dollar puts American companies at a competitive disadvantage and can hamper U.S. growth.
But Trump’s economic policies threaten to push the dollar even higher in value. Perhaps that’s a necessary “evil” to reap the benefits of his plan, but it could put the U.S. in a vulnerable position.
If conflict of currency valuation does break out, aggressors could take advantage of the U.S.’s situation. That means double the risk.
Analyst Warning: “Buckle Up”
No shots have been fired yet, but analysts are already issuing warnings.
A report from ZeroHedge explains:
Peter Navarro, head of the National Trade Council, had accused Germany of exploiting a ‘grossly undervalued Euro’…
Following Navarro’s Euro comments Ulrich Leuchtmann, an analyst with Germany’s Commerzbank, warned clients to “buckle up for a currency war that might become nasty… With his statement, [Mr Navarro] has in fact fired the next salvo in the currency war the US administration is currently conducting against the rest of the world.”
If and when the U.S. ultimately comes to blows with its allies over currency valuation, uncertainty in global economies will swell. When that happens, there’s one thing that you can probably count on: A flight to safe haven assets like gold.
Gold prices are already responding to building tensions of a potential currency war, signaling that many Americans are already acting to protect themselves. If you haven’t already sought shelter in gold, your time to do so may be limited.
Birch Gold Group helps Americans protect their savings with physical gold and silver. Clients can purchase precious metals for physical possession, or move their IRA or 401(k) into a Precious Metals IRA. To learn more, request a free Info Kit on Gold – there is zero cost and zero obligation to you. All you need to do is enter your details at www.birchgold.com
We’ll see your Fake Money and raise you two. It’s a no pot limit Poker Game; our Counterfeiters vs yours. Everybody but the Elite loses.
I see no problem whatsoever in a strong dollar. As much as I hear this constant droning on about how bad it will be, I just can’t imagine a scenario where the dollar RISING IN VALUE against the rest of the world is a problem. With the exception, maybe of those in debt up to their eyeballs. But, well, that should have been thought of before going in to debt, huh?
When I was growing up, the dollar was strong against the Canadian Looney, the Mexican Peso and most of the European currencies (before the Euro) and I remember a middle class family could travel abroad and get a lot of travel for their money. Now, you go overseas, and everything is expensive.
A strong currency means two things. 1. You have a solid foundation for that currency, again, not bad for the country with the strong currency, 2. You have a currency that is in demand, and has limited supply, again, how is this bad? Seems like a good way to store wealth to me. 3. It will not be good for debtors ABROAD, as they will have to pay more of THEIR currency to make up for the shortfall. Again, why is this bad for us?
The only people screaming for a weak currency seem to be debtors, gold bugs and multinationals storing money overseas in order to keep it away from the US. If Trump follows through with tax reform, and companies start moving here in quantity, well tough shit to the other countries. They will just have to reform their financial systems so their currency is in demand as well. Race to the top vs. race to the bottom. Savers win, debtors lose. Its about fucking time….
A strong dollar, rising in value, makes our goods unaffordable to the rest of the world compared to foreigh and local goods and puts American workers out of work while putting foreign workers to work in new and more plentiful jobs as they sell to us cheaply.
This results in a balance of trade deficit, and resulting cumulative balance of payment debt, that eventually leaves us heavily in debt to them and results in the payment being settled in ownership of American property and business by the foreigners to pay that debt and settle it instead of American goods produced and traded on world markets.
You can see this happening on a daily basis if you read world financial news where it is reported, and the really big ones in the MSM when our companies and real estate have their controlling interest or ownership acquired by foreign powers.
Really? How does that work? For the last 30 years, our dollar has depreciated against world currencies. Everything you have mentioned above of why a strong dollar is bad, is EXACTLY what has happened. So, you are rationalizing that the same thing will happen if the dollar appreciates? Please, tell me how you have the same problem in both directions? That is like saying that buying a home is cheaper when the average home is 300K vs when a home is 50K because interest rates are 3% vs 12%. What is the difference? Leverage, debt, that is it. If interest rates go up, it makes homes cheaper relative to savers and incomes. When interest rates are low, it makes homes OUT OF REACH for anyone that does not want to take on massive debt. Currency depreciation ONLY benefits debtors, NOT savers. If my dollar is worth more, then I have the choice of just staying home rather than even GOING TO WORK, because I have wealth. If I have depreciated dollars, I HAVE to work just to keep up with inflation and the debt I am forced to take on because my depreciated dollar buys much less today than it did yesterday. The thing that will keep jobs in America, is not FORCING companies to attempt environmental and wage arbitrage by outsourcing to other countries because we have such high national debt and regulations, that companies have to move to other cheaper labor environments just to compete. If we have superior PRODUCTS and business friendly policies, corporations will choose to domicile HERE and enjoy the profits of a STRONG CURRENCY. Supply and demand. Mathematics.
Our dollar was, is, and if the international bankers get their way, will be the basic reserve and strongest and stablest currency in the world.
Rethink your position in terms of relative values between the currencies and their global strength status and include our cumulative balance of payments debt for which we do not have the trade goods to make good in payment.