Armstrong Economics- Trump Tariffs – The Art of the Deal
The real bombshell is more likely to be Europe, which has been so anti-Trump with all the media swearing Trump as a felon could never win. Interestingly, some $82 billion in gold has left the London Market and moved to NYC warehouses. Why? They fear a Trump tariff will be applied to everything, including gold. In reality, this could lead to a shortage of gold for Europe if the EU imposed tariffs on anything and everything coming from the United States, including gold.
Is Europe still a thing?
The Fed’s reverse repo facility, which offers short term lending at rock bottom rates, has been slowly draining for over 3 years as Quantitative Tightening has become the order of the day. It now has very little money left in it, necessitating a search for funding at much higher interest rates. Either that, the Fed switches back to Quantitative Easing. My bet is on the latter, although Powell is being a bit stubborn about that at the moment.