Donald Trump’s protectionism results in increasing discontent all over the world

The bigger is the car the more important is the road, the car is driving on. The USA can afford protectionism, and trade wars, and sanctions. Others can do nothing but express criticism, like Russia, go respectfully to Washington, like China, or vacuum up the torn pieces of their own currency, like Turkey. The Poor’s means is conflicts; the Rich are getting entertained by wars. The currency strength determines who is taking over. Does anyone have doubts in dollar strength?

Sanction is a kind of substitute for wars. Why do you need to direct your army to a country if you can ruin its economy? The USA easily finds out pressure points and hit them. It is going to cut off oil pipe for Iran, foreigners access to the bond market for Russia, the export, crucial for the country, -for China, and collect the debt from Turkey. Washington just needs a tiniest reason to trigger a conflict. Whether it is poisoning of a British spy or arresting a pastor. Of course, there are many examples in the history when a war started because of one person, but not that much often!

- Donald, who can be called a good person?

- A person like me. Only, he is good.

Those, who never change their minds, are like people who always go outside wearing the same clothes. Doesn’t matter whether it is raining, snowing, or boiling hot. But it is an art to change your own mind like socks! The U.S. president doesn’t like the strong dollar and charges others with competitive devaluation of their local currencies; next, he is showing off with the strong dollar and the tensions with Turkey, talking about a high demand for the U.S. dollar. Finally, now the social network services are getting a more reliable information source for investors than macroeconomic statistics. How long is going to be?

- Do you have a twitter?

-No, I’ve already been cured of it.

The Donald Trump’s protectionism features promiscuity. Doesn’t matter who you are, a friend or a foe, you can face sanctions any moment. It is alone dangerous for Washington. As Snow White used to say, “Thank you, dwarf, I’m going to the next one!” Turkish is getting closer to Russia, Pakistan – to China. The victorious foreign policy results in a tightening net of enemies! In fact, the offended countries are selling out U.S. Treasuries and reduce dollar share in the forex reserves. If the process is scaled up, dollar’s dominance can be shaken.

By hiking import tariffs, Trump pretends to be defending free competition. Say, let’s talk and cancel import tariffs together. The idea is good, but if all Washington threats are implemented, the average amount of the U.S. import tariffs will be the largest for the past five decades! What is it that is called a sound competition! Damage your opponent’s health! I suppose, the USA shouldn’t much worry as long as each opponent is fighting alone. But no sooner they unite and remember that they somehow have only a single baseball bat in their territories, when everything will turn upside-down.


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The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.

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