In this report I cover the early market action from London on Tuesday, July 3rd, 2018. I look briefly at the precious metals, the stock market, the dollar and the oil price.
I also look closely at the history of the U.S. current account, trade balance and national debt. I point out that since 1971 when President Nixon took the dollar off gold the whole international trade system has been completely unhinged.
On e can clearly sees from the charts in the report that prior to 1971 the U.S. and the rest of the world were running a balanced international trading system and U.S. national debt was also relatively under control.
My conclusion is that China, the EU or Japan are not to blame for the current trade and current account imbalances and that the irredeemable fiat money system, that President Nixon created as a result of closing the gold window in 1971, is the big culprit for the current trade war raging among the major trading nations of the world.
