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What If Trump Cuts The Swap Lines?
In the editorial accompanying the March 27 Daily, I highlighted a media report which suggested senio
You’re getting to the heart of the matter. Our top guy relishes having that kind of power. And would have no problem wielding that threat. Tectonic shifts underway as we become even uglier Americans.
They better stock up on $TRUMP just in case.
This is what purported-adult Bessent is supposed to prevent.
the fact that these types of scenarios are entering our dialogue is alarming in and of itself … if one’s scenario planning and risk management is this broad (these are black-hole events, not swans), then threading the needle will be as difficult as that camel, no? No wonder folks like Berkshire and others keep piling up ‘cash’ …
I figure there are two options for what’s going on; 1)Trump’s an absolute fool or 2) he’s working with Putin to destroy world order which would lead to China attacking Taiwan, North Korea attacking South Korea and Russia attacking Eastern Europe. With the ship of fools running defense, the outcome isn’t even in question. Trump is probably wetting himself convinced he’d be able to have Canada and Greenland. That second scenario would be greatly aided by Trump cutting the swap lines. In the meantime he’s dismantling NATO and attacking all of our traditional democratic allies. I guess that about completes Putin’s wish list. If Zelensky is right about Putin dying, then Trump will have to move quickly to aid his buddy.
Fool is the kind word, demented is the real one, and it seems to fit now. This was your scariest comment ever. Nothing the US could do about it. If Lord Trump even hints at this I’m going to get dressed and hear to the nearest gun shop.
Unfortuantelt this is cicrulating in global capital / FX markets and I have touched or gathered some thoughts that added together would generate an almost instant collapse. Trump and Musk have no idea about the global financial structure. The ‘Mar a Lago Accord’ is Trumps puff piece to say that he reoranized the floating rate (basically Smithsonian system) from Nixon to replace the Bretton Woods structure. HIS PLAN is centered at Mar a Lago to keep the FED experts OUT. NO MEDDLING FROM PEOPLE WHO KNOW WHAT THEY ARE DOING. Even the inkling that this a going to happen will be a crisis for the “system”
There is no way to take the dollar out without a humongous crisis, but the dollar is now untrustworthy as it is and the European financial elite is rapidly getting aware of the world’s risk. Can we go on SURE but only if TRUMP becomes sane SOON..
Thanks, I was hoping that you would speak up on this topic.
The president’s team do not appear to be unaware of what you and our Dear Leader have said. Recall his threat to the BRICs nation not to even think about launching an alternative to the US$. All the way back two months ago? USD primacy gives the USA huge leverage.
I can’t believe we are even talking about this….
At the risk of sounding hyperbolic, I’m starting to accept that anything destructive is possible now. And that sh*tty things will be regular occurrence over the next 4 to how every many years.
Potentially on the scale of the GFC and/or pandemic. I suppose this is a psychological self defense mechanism to prevent the anxiety of constantly being shocked about the inconceivable being conceivable. As they say, be comfortable with being uncomfortable….
Very bullish for gold.