Trade wars are erupting, scandals are unfolding and now the United States is entering into the much prophesied currency wars that many experts have predicted was coming for years.
The United States and China, who continue to hold out against American tariffs, are entering into a quickly accelerating downward spiral.
Already the US government has ordered a massive $34 Billion worth of tariffs on Chinese goods entering into the United States, while at the same time, China has fired back shots of their own, issuing tariffs of their own kind.
As predicted, this would be far from the last that we would see, as now, we are learning today that President Trump plans on increasing tariffs by an additional 25% , up from the previous 10%.
This equates to a stunning $200 Billion worth of tariffs on Chinese goods, attempting to enter the United States marketplace.
This drastic increase in tariffs comes on the heels of a significant decrease in the value of the Yuan, which essentially has circumvented the previous tariffs placed by President Trumps administration .
These actions, and China’s willingness to devalue their currency proves just how serious they are about winning this currency war, while at the same time, so too does Trump’s acceleration in additional tariffs.
Just how low China is willing to take the Yuan is yet to be seen, as are the unintended consequences of taking such a drastic action.
Already, markets, especially those in China, are experiencing significant turbulence, as they corrected sharply lower.
Meanwhile, markets in the West were more optimistic in their ability to see this trade war through, as Apple surged higher, pulling the broader markets up, along with it.
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