DEFLATION COMING

MISCALCULATION - TRUMP VS XI

WHO BLINKS FIRST

 

Europe is entering a recession with interest rates already negative….Germany paid for all the mistakes of its smaller EU neighbors.  

Chinas Nuclear Option  - Rare Earth Metals Surge

The free spending non contributor countries should have been allowed to go under . Germany - France - UK  were the economic engines pouring cash into Greece, Italy and others  .. 

You cant get a mortgage in Europe with real estate values dropping .The EC cant lower rates anymore with Interest rates already negative forcing money to flow out of the Euro and into the US dollar and US marketsWall Street Daily

Huge amounts of cash has been leaving Europe and has bolstered the US markets.

As things get worse in Europe ( Like Japan - already in a 20 yr deflationary cycle )  cash will start to come out of the US flowing back to Europe as savings are depleted , unemployment rises and social needs have to be met.  Carl Icahn Sues Occidental Pete Over Merger 

China is entering the same economic scenario.

Soon the tail will be wagging the dog and the US will begin to suffer.

Trump isnt helping by purposefully hurting the Mexican and Chinese economies by slowing US consumption using the Trump tariffs  It isnt that Trump is wrong on immigration and trade protection  its the way he's doing it and a recession in China and Mexico will find its way back to the US eventually.

National pride and blustery old men will drive tariffs higher with long lasting effects …

Who can hold their breath longer , Trump or XI  . Our fate shouldn't come down to two blustering egos . Trump has danced himself and our country into corner . But then again Trump is good at loosing and saying it was a win and making that win believable .Let's see. Yes , Trump can pull a pit bull out of a hat instead of a rabbit .

This is all catching up to us and with our 10 year treasury nearing 2% and inflation almost nonexistent. We are in for a long bumpy deflationary ride.

Values of our homes , stocks,and anything with value will plummet over the next 10 years ….Investor net worth will evaporate as things decrease in value ..Currency devaluation will dampen the deflationary effects temporarily and there lies the canary in the coal mine . ..the Euro vs Dollar vs Yuan ..which breaks first.  Who is the winner !     NOBODY