TRUMP AND G7 MEETING
Monday, June 11, 2018
TRUMP AND G7 MEETING
I had believed that prudence will come to US president Donald Trump which will save the G7 summit. This did not happen. Trumps says “Fair Trade is now Fools Trade”. The intent of the Trump is always patriotic. His means of communication is like a child. The phrase “Fair Trade is now Fools Trade” can used by every nation over the coming years for their own interest.
Europe will implement counter-measures against U.S. tariffs on steel and aluminum just like Canada, German Chancellor Angela Merkel said after the G7 meeting. In business terms, Trump is trying to convert a salaried employee (which in this case is Europe) into an entrepreneur (which is this case is implied to make Europe Independent and self-reliant). I do not think Europe will ever be intendant or there will be a NATO without USA. But Europe will take snail’s steps towards a closed ended economy which will nightmares to future US presidents. R.I.P the US dollar.
Contrarian thinking makes me believe that the Trump’s current moves to unfriend Europe as an ally is just a political drama before the US senate elections in November. USA and Europe will always be friends. USA without the support of Europe cannot rule the world. Europe’s elite need the support of USA to manipulate democratic elections in their way.
Emerging markets central bankers’ dilemma will only rise whether to support Trump or increase alliance with Europe and Canada. It is just wait and watch for emerging market central bankers.
Effect of G7 meeting on global financial markets: US dollar will weaken in the long term (may be from 2019) unless there is truce between G7 members. Right now FOMC and Italy and Spain’s political issues will dominate stocks, bonds, currencies and bullion. Trump has made global financial markets a punters paradise.
Disclaimer: Any opinions as to the commentary, market information, and future direction of prices of specific currencies, crypto currency, metals and commodities reflect the views of the individual analyst, In no event shall Insignia Consultants or its employees have any liability for any losses incurred in connection with any decision made, action or inaction taken by any party in reliance upon the information provided in this material; or in any delays, inaccuracies, errors in, or omissions of Information. Nothing in this article is, or should be construed as, investment advice. Prepared by Chintan Karnani
NOTES TO THE ABOVE REPORT
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