| In this the sixth episode of the Goldnomics podcast we discuss the deepening trade war between the U.S. & China and the risk of a wider war. GoldCore CEO Stephen Flood and GoldCore’s Research Director and respected precious metals commentator Mark O’Byrne in discussion with Dave Russell. Our discussion starts with the “Tweet” from Ray Dalio, founder of hedge fund Bridgewater Associates, that states; “Today is the first day of war with China”. The tweet from the founder of the world’s largest hedge fund, which manages some $160 billion, comes after the U.S. slapped levies on some of China’s exports to the U.S., and President Donald Trump threatened further action. Is he suggesting that there is something more than just a Trade War brewing between the U.S and China? Is he warmongering, is he suggesting that Donald Trump is warmongering, or is he just alluding to what the unintended consequence of a trade war could be, as we have seen throughout history? Is this part of Trump’s goal to Make America Great Again? We look at the serious unintended consequences of these actions. We look at the backdrop to these trade wars and how Globalization can be a double edged sword. How will the economies of the world react; China, EU, Canada? The trade war is on and the gloves are off! Listen to the full episode or skip directly to one of the following discussion points: 2:00 Ray Dalio is followed widely, respected and is important to listen to 2:32 Dalio is rightly concerned that trade wars might lead to actual wars 2:52: Whats the background, why trade wars globally and why now? 4:22: The effects of a globalisation since World War II 4:27 What effect did globalization have on the work-force – working and middle classes? 5:04: How China leveraged their cheap labour force for an international competitive advantage? 5:22: Imported Chinese goods are cheaper than the goods that are being domestically produced in America, how is this effecting peoples’ jobs in America. 5:40: Are Chinese workers now competing with the Vietnamese workers? 6:04: How Trump’s intention to safeguard American manufacturers and workers may cause American consumers to pay more for domestically produced goods instead of buying cheaper imported goods 8:06 The U.S. has a deficit with 140 countries around the world and why this can’t be fixed with a trade war. 8:30: History suggests that trade wars lead to currency wars which eventually result in to actual wars. 9:00: Ray Dalio is right to be concerned 15:10: What is the response of China? 15:11 How Trump’s action to protect the domestic industries and workers is not just targeting China but also impacting Europe and Canada as well 16:14: Why Trump’s supporters continue to back his actions and decisions 17:36 How the European Union is responding 17:50 Harley Davidson and the unintended consequence playing out. 18:00 How Trump’s actions to protect domestic jobs is resulting in the contrary 18:41 How Trade War will add an extra premium to the cost of doing business all over the world 19:05 Why China is putting more and more money in infrastructure – partly so they can easily get their goods to markets 20:52 Behind the scenes of trade wars, is a currency war actually going on? 21:52 Why are the Chinese continuing to quietly accumulate gold 22:22 The Chinese government are planning for the long term, unlike the U. S. government 23:26: How personal prosperity of Americans is diminishing while certain corporations continue to do better 24:34 Why globalization is not delivering security for individuals and their families 24:41: Historically trade wars were the portent of an actual war 29:10 How Europe’s massive economy has an important role to play in this trade war 29:38: What action might investors and savers take in this situation? 32:08 Trump’s actions until now only focuses on a short term protection of the U.S. economy 32:47: Why investors need to diversify and re-balance their portfolios 33:07: Why diversification needs to be geographical and not just asset focused 33:54 How gold can be used to protect a portfolio in a trade and actual war 35:17 Ray Dalio’s Tweet doesn’t’ necessarily signifies the first day of war with China but there’s definitely a trade war going on between U.S. & China, the gloves are off and there may be unintended consequences. People mentioned in this episode: Ray Dalio: https://twitter.com/RayDalio Harald Malmgren: https://twitter.com/Halsrethink Pippa Malmgren: https://twitter.com/DrPippaM Gerald Celente: https://twitter.com/geraldcelente Make sure you don’t miss a single episode…… Subscribe to the Goldnomics Podcasts on iTunes, Soundcloud, or YouTube: YouTube.com/user/GoldCoreLimited Follow us on social media: GoldCore on Twitter: https://twitter.com/goldcore GoldCore on Facebook: https://www.facebook.com/GoldCore/ GoldCore on Linkedin: https://ie.linkedin.com/company/goldcore Visit our website at: https://www.goldcore.com |
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