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A quip from the blog today. Will we see history do a repeat, will Trump make some phone calls and get a currency dump soon ? He speaks heavily on the deficit . Methinks just the “Trump Tariff Tantrum” for now.
“By 1985, I was summoned to the US. They were arguing to force the dollar down by 40% to reduce the trade deficit as that theory today is espoused by Trump. That was the Plaza Accord, and I wrote to President Reagan and warned that they would cause a crash within two years, and that became the 1987 Crash. ”
We do NOT see a major Crash on the horizon in shares, commodities, gold, silver, etc.
The greatest risk of a crash will be in government debt.
https://www.armstrongeconomics.com/qa/its-always-the-currency-vs-investment/
MA doesn’t make ANY sense here.
First, if we get a crash in Treasuries, then that WILL usher in a global crash, on Wall and Main, since they are the collateral behind financial dealing and rising rates would kill housing and tech.
Second, we have already had a crash in Ts, when rates went from 4%. That move dramatically impacted price. See latest Jim Bianco with Taggart on why rates now have to go to near 20% for bond prices to once again move like they did during the hiking cycle.
==> rates went from 4& ….. where’s the edit function, guys?
I see .. the software deleted my phrasing … from under 1 pc to over 4 pc.