Global Currency Wars and the US Dol;ar

When the USD plummets, you’ll need a Plan B

U.S. President Donald Trump isn’t giving up his fight to weaken the U.S. dollar any time soon.

The focus of his attention (and tweets) is now targeted towards the Federal Reserve due to its resistance in lowering interest rates – which is what he’s pushing for.

Trump believes that a weaker dollar will enable cheaper exports – and therefore create more jobs to Make America Great Again – which would make the greenback more competitive against other currencies.

The call for weakening the dollar comes out of the global currency war and the on-going trade row with China, who have already retaliated with a steady but sharp decrease in the cross rate  of the yuan against the dollar – in August the yuan reached past seven to the dollar, for the first time since 2008.

U.S. stock prices duly dropped (the Dow Jones Industrial Average fell by 2%), and Trump has since labelled China a currency manipulator, but economic pundits predict China won’t weaken its currency further as it rattles markets, but time will tell.

Trump winning a trade battle won’t necessarily mean winning the war for a balanced economy. The volatility of a USD roller-coaster has a ripple effect throughout the market – potentially weakening the currency even further to bring about massive inflation, leading to recession.

And we know that inflation is just a hidden tax, because the Federal Reserve regularly prints money that’s not backed by anything – and then lends it to the government. According to the Austrian school of economics inflation is an increase in the money supply. The increase of prices is only one of many symptoms of this inflation, but it shows how much redistribution is occurring thanks to U.S. monetary policy.

This begs the question: where does a weak dollar leave you?

You’ll need a Plan B, which means thinking outside the box when it comes to diversifying your assets. Gold and silver are investments that stand the test of time, and will withstand global currency wars and inflation. Part of your Plan B must ensure that your valuable assets are safely out of the banking system, and out of a distressed government’s (and central bank’s) reach.

Fort Kobbe Vaults is located in the Panama Pacifico Free Trade Zone in Panama, Central America. Panama has a stable, democratic political system and does not require the depository to report stored assets, as they are classified as a logistics company. With a complete VIP protection service, Fort Kobbe Vaults offers customized, fully insured safe custody boxes and vaulting solutions that are fully allocated and segregated.

To find out more about safeguarding your investments and your future, contact us.

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Mike Brown
Michael Brown is a native of South Africa, where he followed his military service with undergraduate and advanced diplomas in mining engineering from the University of Johannesburg.
Mike Brown

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