Submitted by Martin Armstrong via ArmstrongEconomics.com,
The European Union’s chief BREXIT negotiator, Guy Verhofstadt, told Reuters that Donald Trump is part of a three-pronged attempt to undermine the European Union.
The other two threats were from radicalized Islam and from Russian President Vladimir Putin, who Verhofstadt said was also working against the progress of the EU project.
In the aftermath of the stunning statement by Trump's top trade advisor, Peter Navarro, who indirectly warned that a currency, and therefore, trade war with Europe may be imminent after he told the FT what everyone else knows but is unwilling to admit, namely that Germany is using a “grossly undervalued” euro to which was like an “implicit Deutsche Mark” whose low valuation gave Germany "an advantage over its main partners", analysts are asking if this is the precursor to a third front in Trump's currency wars, which most recently included China and Mexico.
Can Trump Deliver?
Paul Craig Roberts
My view of Trump is conditional and awaits evidence. I am encouraged by the One Percent’s opposition to Trump, or we have just experienced the greatest ruse in history. Indeed, a pointless ruse, as the Establishment had its candidate in Hillary.
The Trump administration just fired the first shot in the US-European currency, and thus trade, wars when Trump's top trade advisor Peter Navarro accused Germany of using a “grossly undervalued” euro to "exploit the US and its EU partners", the FT reported noting the comments are "likely to trigger alarm in Europe’s largest economy." News of the statement sent the EURUSD surging and the dollar tumbling to fresh 2 month lows.
European bonds fell and stocks rose led by banks and retailers as surging inflation data prompted investors to switch into reflationary assets even as speculation about ECB tapering has returned. Asian stocks and US equity futures declined. The Yen and gold advanced after Trump’s firing of the U.S. acting attorney general added to concern over the unpredictability of decisions in the new administration.