In this report I cover the early market action from London on Monday, June 18th, 2018. I look briefly at the precious metals, the stock market and the dollar.
I also talk about Triffin's Paradox and how it relates to the dollar as a reserve currency. Triffin was an American Belgian economist from the 1960s who said that under a reserve currency system based on fiat money there would be huge trade imbalances and that countries would need to try and undersell U.S. products in order to build reserves of fiat dollars ot the reserve currency. This, of course, has taken place as we have seen the U.S. run huge trade deficits as other countries have built up huge dollar reserves.
In a recent article published in several outlets Hugo Salinas Price argues that President Trump's trade wars and his intention of eliminating trade deficites could very well take the world to the sanity of a gold standard which would result in balanced trade between nations as gold extinguishes debt and is not irredeemable fiat money that can be printed out of thin air.
Salinas Price concludes that Trump's "madness" could actually be the road back to a gold standard.
Salinas Price article: Salinas Price Aricle: https://www.zerohedge.com/news/2018-06-17/donald-trumps-madness-new-gold-standard
▶️ DTube
▶️ IPFS