Of course President Trump couldn’t stay away for too long when it comes to tariffs and so he has placed tariffs on Brazilian and Argentine steel and aluminum. Claiming on Twitter that both countries were engaged in a deliberate effort to devalue their currencies. Trump argues that this places US manufacturing firms at a disadvantage. What he leaves out is the fact that Argentina is on the brink of economic collapse and a massive debt default. This is why the Argentine peso has lost so much value. Unless the President is arguing the Argentines are conspiring to collapse their economy for the sole purpose of devaluing the peso? We think not.
In the same vein of economics – US ISM manufacturing PMI contracts for the 4th straight month with leading indicators such as new orders and employment continuing to show signs of a further slowdown. And on top of all of this, President Trump is once again attacking the Federal Reserve and “demanding” that they cut interest rates and devalue the US dollar. Do you want your cost of living to increase faster than it already is? Well if you do, then I guess you want a weaker US dollar as well. We do not.
Lastly, on the economic front, US non-financial corporate debt nears the $10 T mark, which is almost 50% of US GDP. This eclipses the corporate debt levels prior to the recessions of the early 90s, the dot-com bust, and the GFC of 08-09. So, what could possibly go wrong? Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Recession #EndTheFed #Politics #Trade #USA #China #Truth #Justice #Peace #Protests