The Street: Buckle Up, We May Already Be in a Recession
Article by Maleeha Bengali in The Street
With every waking day, Trump decides to place tariffs on yet another country. Its latest target is Mexico and potentially Australia as they dared export more Aluminum into the U.S. market.
Britain held the reserve currency status from 1815 through 1920, followed by the U.S. which has held this post since. Prior to Britain, countries such as France, Netherlands, Spain and Portugal all held that position for about 95-100 years. It has been 94 years since the U.S. dollar took command, but now what?
China has been taking steps over the past few years towards forming a currency alternative to the U.S. dollar.
Oil now trades in Chinese yuan, the third largest trading volume in the world. With sanctions placed on Iran, Europe and China are finding ways around getting their barrels. Trade wars have just been a smoke screen overlaying a much bigger scheme behind the scenes.
Trump's plan, other than to use the U.S. consumers as bait by placing higher taxes implicitly on them, is to rattle the financial system, which has been built like a Jenga tower. One piece removed incorrectly can cause the entire structure to collapse -- and Trump knows this, as he is weaponizing the U.S. dollar.
To read this article in The Street in its entirety, click here.