We have previously discussed the dollar doom loop scenario, whereby a strengthening US dollar could cause a disastrous downward spiral around the globe, especially with respect to commodity dependent nations. However, there is also the possibility that this scenario does not unfold, and rather than having a “swan song” to new heights before its eventual collapse, the US dollar, just continues its descent. If this happens, this too can have devastating global effects, especially if this causes commodity prices to spike, among a whole host of other issues. In the midst of the Greatest Depression, higher prices are not a panacea, but will simply make the situation even worse. As higher prices will not be a result of an increase in demand, but rather the demise of the US dollar, rendering them near worthless. Looking into gold and silver as potential hedges against such scenarios may prove prudent as both have served as true money for millennia.
Is a new cold war brewing – this time between the US and China? Yes, most likely. Today the US government ordered the Chinese to leave their consulate in Houston, Texas. This is an escalation in recent tensions between the two nations as the pair goes back and forth on a number of geopolitical issues. Some of these pertain to the South China Sea, Hong Kong, Taiwan, trade and tariffs, human rights issues, and COVID-19, amongst others. It is unlikely that all of these disagreements will be solved in the near future. Therefore, expect a lot of uncertainty and volatility for the foreseeable future as both sides attempt to play the “strong-man.” Let us hope this does not turn into a hot war, but be prepared if it does happen. And should it happen, the economic fallout will be nothing short of catastrophic, not to mention the loss of life. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Gold #Silver #Debt #Bailouts #USA #China #BananaRepublic #Depression #Recession