The New Currency Wars

  • The trade war threatens a zero-sum game of tit-for-tat race to the bottom in which everybody will be worse off.
  • The tariffs have put upward pressure on the dollar which is taken as a clue for ‘currency manipulation’ and risk setting off a second zero-sum race to the bottom.
  • The post-war international economic order on which most of the post-war prosperity was built is collateral damage and we wonder how long investors keep ignoring this risk.

Source: The New Currency Wars | Seeking Alpha