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TARIFF DEEP DIVE…LOTS AND LOTS OF INSIGHTS
https://www.youtube.com/watch?v=wYrSt2gd87o
WHO’S WINNING THE TRADE WAR ?
Exhibit A
Canada has been accumulating US Treasuries for Years to the tune of 300 Billion $ at the behest of the Globalists and at the expense of having sold all their Gold years ago and never to have Bought any back
This is the Amo the Globalists Used just for a time like this to Tank the US Bond Market
So Canada under Carney ( and Europe) who have been playing hardball with retaliatory Tariffs ( unlike the rest of the world ) have exposed themselves as The Enemy of the USA
The Claim is that Canada’s Tanking of the US Bond Market caused Trump to back down and that therefore Canada ( Globalists) won the Trade war
BUT
Notice the US Dollar has Dropped and the Canadian Dollar and Euro have risen 10% !
How do you win a trade war when your Currency has risen 10% and your Exports are Now 10% More Expensive than they were a couple of weeks ago ?
The Trump Tariff Game has exposed who the enemy is and they have shot themselves in the groin.
AND…These Globalists apparently were massively short Tech stocks …so Trump announced over the weekend that tech ( Apple et al ) was exempt from tariffs…which will cause a short cover Rally
This week
Luongo thinks this was all executed to perfection in part to stop these Countries from Depreciating their Currencies ….which they have been doing to gain Trade advantage…Now the USD is depreciating against their Currencies and their Exports just got 10% cheaper for other Countries to Import….Boom !
“The Claim is that Canada’s Tanking of the US Bond Market caused Trump to back down and that therefore Canada ( Globalists) won the Trade war” It may be true this is what caused Truno to reverse course, but the Europeans are using Canada the same way they and the US neocons are using Ukraine to fight Russia. Ukraine gets destroyed and if this persists, so will Canada. They may have gotten Trump to backoff on the EU higher tariffs but Canada’s 25% hasn’t been rolled back, so how has Canada won anything?
On top of all of these, many emerging markets, including China and now even Canada, are issuing debt denominated in US dollars. The older issues have also lost on the foreign exchange. Carney in Canada has just demonstrated his true lack of understanding of financial markets. He dumped US Treasuries but then issued Canadian debt denominated in dollars. As the C$ declines, he will lose on the return of the foreign exchange as well. Even the OECD report found that the costs of borrowing through dollar-denominated bonds had risen from around 4% in 2020 to more than 6% in 2024, rising to more than 8% for riskier, junk-rated economies nations.
a quip from Armstrong blog