UPDATE: Merkel responds by saying US can’t influence euro.
“Germany is a country that has always called for the European Central Bank to pursue an independent policy, just as the Bundesbank did that before the euro existed,” Merkel told a news conference with Swedish Prime Minister Stefan Lofven.
“Because of that we will not influence the behaviour of the ECB. And as a result, I cannot and do not want to change the situation as it is,” she added.
Trump’s trade advisor, Peter Navarro, is making waves this morning after suggesting that the euro was grossly undervalued — giving the cucks in Germany an unfair advantage over its rival, especially within the EU.
His comments were directly pointed at Germany’s Merkel, a person critiqued often by President Trump for her stance on immigration.
“A big obstacle to viewing TTIP as a bilateral deal is Germany, which continues to exploit other countries in the EU as well as the US with an ‘implicit Deutsche Mark’ that is grossly undervalued,” Mr Navarro said. “The German structural imbalance in trade with the rest of the EU and the US underscores the economic heterogeneity [diversity] within the EU — ergo, this is a multilateral deal in bilateral dress.”
The OECD (illuminati) agrees.
Euro is the most undervalued currency among its Group-of-10 peers https://t.co/pBgSx3XBD2 pic.twitter.com/rI4oDezEGL
— Bloomberg Markets (@markets) January 31, 2017
The net result of these comments have people thinking trade war, sending the dollar lower, gold and other base metals way higher, and the dollar lower.
The obvious winners with a weaker dollar are gold and silver. I prefer zinc, especially since it has utility, mostly used to galvanize iron into steel. With Trump’s infrastructure spending bill not too far around the bend, and the specter of the wall looming, I love $TECK and $HBM for their zinc exposure.
Bitcoins are also sharply higher on this news.
While Trump may not talk about it, or his advisors, the culprit of the articailly weak euro is an obvious one: ECB QE.
As long as the ECB is printing magic money out of thin air to purchase bonds, the euro will remain weak. QE has distorted the essence and rules of finance by rigging borrowing costs and suppressing currencies in order to gain an advantage over non host country counterparts.
Will Trump call the banksters out next?
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$AUY ??