Trade war with China could be bad for dollar, good for bitcoin
https://i.imgur.com/dZzteIn.jpg
My preliminary analysis indicates that a trade war could work to devalue the dollar. China has been pegging the Yuan as devalued in relation to the USD since 2001 when they joined the World Trade Organization (WTO). This has had the effect of tilting the whole playing table so that goods "roll down hill" more easily to the US and goods really have an uphill battle getting from the US into China.
Trump is not willing to start off fixing this by devaluing the dollar, so he's using tariffs. But could tariffs have a devaluatory effect on the US Dollar?
If so, bitcoin stands to gain ground even faster than it is now.
“It’s a bit of a double-edged sword,” said Tannuzzo at Columbia Threadneedle. “The dollar should ultimately strengthen in the short-term against the currencies affected by the tariffs; in the long-run, it could stay under pressure overall because it has to fund large and growing current-account deficits.”
When currency investors "take cover", it would be great if there was a currency that was immune to all this trade war chaos....
Oh wait.
Submitted March 25, 2018 at 12:53AM by darkstarman https://ift.tt/2IMxxt0
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