Friday, July 20, 2018

A Currency war combined with a Trade War isn't really good for anyone

This is where you are going to see a whole lot of poorer people getting screwed and potentially losing everything. Anyone poorer in China and Europe likely are going to see their buying power (at least as far as buying any goods from the U.S.)going down close to zero.

When countries manipulate their currency it is usually down in value (in relation to other currencies).

This might seem counterproductive but when a trade war is going on too, this might allow other countries to buy their goods during a trade war. So, lowering the value of the Yuan and the Euro in relation to the dollar is a way of fighting against a Trade war started by Trump. So,  logical reaction likely could be the U.S. also devaluing the dollar. But, this will ruin many people in various careers and investments around the world as various businesses lose business or even go bankrupt through all this.

Only the biggest companies likely can survive all this because they might have enough capital to see themselves through all this. So, the poorer people will make out the worst as well as the least well capitalized smaller companies or those with the most debt.

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