The dollar had a no-good, terrible December, and it looks like the U.S. greenback may be in for another thrashing, according to several hedge fund managers. U.S. Treasury yields continue to shrink. There’s a shift in the economic growth rate between the United States and the rest of the world, according to financial strategists.
In December, the dollar dropped by two percent against 10 of its financial peers. That’s the largest drop in two years. The dollar started its journey to the toilet in October when Trump told the press the phase one trade deal is a go. Hedge fund managers switched their position on the dollar back then to a net short position for the first time since 2018, according to the Commodity Futures Trading Commission. The consensus among hedge fund gurus is the dollar is on the road to long-term weakness.
The escalating feud between Mr. Trump and Iran just went ballistic when the president gave the order to drone-fry Iranian General Qassem Soleimani as his car left the Baghdad airport. Soleimani was Iran’s top general in the Revolutionary Guard. He recently told the press if Trump wants to rumble, his troops were ready to give Trump a real taste of an Iranian smackdown.
President Obama said leaving the 2015 nuclear agreement would be the match that started another Middle Eastern war. According to the country’s Supreme Leader Ayatollah Ali Khamenei, Trump and America’s allies in the region may feel the power behind his words. Mr. Trump carried out that attack without consulting Congress, and that will exacerbate the impeachment war between lawmakers and Trump.
The stock market had the biggest gain in history recently, but those gains will evaporate now that the Trumpster decided to start a shooting war with Iran. Trump’s critics claim the president ordered the strike to take attention away from his impeachment and to show his voter base he can kick ass while he plays golf and tweets about his perceived Congressional enemies.
The farmers continue to stand behind the president even though the Trumpster used them as pawns in his tariff war, reports rollingstone.com. Chinese importers bought $20 billion worth of farm products in 2017. In 2019, the Chinese bought $9 billion worth of soybeans. Mr. Trump told the farmers his $28 billion in subsidies would keep food on their tables. But he didn’t tell them Brazil, Mexico, and Argentina will battle for new farm orders with lower prices.
The farmers call the president’s $28 billion bailout “Trump money.” Mr. Trump calls it keeping his red hat crowd happy so he wins in November.
Dil Bole Oberoi
