Currency issues are a nightmare for Trump. To grow trade, the USD has to be substantially depreciated.
With the Yuan semi-pegged to USD, there are serious implications for both the US and the Chinese economies.
If offshore Loan dollars come home depreciated, that would be good news for foreign borrowers but bad news for the US.
Currency pegging is breaking down under enormous pressures as we speak.
The future of Trillions of dollars of derivatives written around exchange rates is at stake.
To this simple minded writer, it seems that the US cannot possibly act unilaterally on its high dollar problem.
Add to this, The EU is a failure, cannibalising member state Greece, the result of forcing an inappropriate currency on it.
The problem is monumental, but will be addressed because there's no alternative.
In the event I think the US Fed and its debt based system will be removed, and to ensure stability and to maintain value, a gold backed system will be forced on a new reserve currency, and sovereign currencies will be pegged to it.
To retire US debt, the USD will take a horrendous depreciation, with the social consequences implied.
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Currency issues are a nightmare for Trump. To grow trade, the...
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