I’m not the only one who sees the possibility of the EU, Canada and all the countries affected by the ‘Trump Tariff Market Crash’, getting together to ‘Fix’ the Trump problem. Since right after WWII, US has long enjoyed having the dollar, as the Reserve Currency. That could change, and it would be a DISASTER for the US…..

 “I do think that at this point we might have passed the event horizon, meaning that even if Trump backs off from the tariffs, there’s been enough damage done to the U.S. economy, to the global economy, to investor confidence, consumer confidence, that we’re probably going to see a recession regardless of what happens,” he said.

He points out that while public attention is focused on the stock market, there are alarming signs in the bond market. Usually, if stocks go down, so do yields on U.S. Treasuries, because they become more desirable to people looking for a safe place to park money. At least right now, that’s not happening, which he thinks could signal a crisis of confidence in the stability of the U.S. government and the debt it issues.

“If we’re moving to this new world where the U.S. just can’t be trusted, then do we really want to hold a lot of Treasuries?” he said as he sketched out investors’ thinking. “Do we really want to use the dollar as a reserve?” It turns out that there’s a price for taking all the soft power America has accrued since World War II and setting it on fire. Who knew.