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