Market panic is mounting as Trump’s trade policies send shockwaves through global financial systems.
There are a few economists around the world predicting that US President Donald Trump’s radical tariffs could spark a global economic collapse as bad, or worse, than the 2008 international financial crisis.
Some markets closed early yesterday as the bourses went into a panic, mainly because no-one can clearly see the outcome of what amounts to turning the business world upside down.
By bringing hurt to billions of global citizens – who will see their savings and pension funds decimated – Trump runs the risk of forcing people to turn elsewhere to find new allies and friends they can trust.
Already that is happening in ways that the Americans may only come to comprehend later, when their global hegemony is over.
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This week, China has been reportedly testing a new international payments clearance system, which would not only cut the ground from under the US-based Swift system, but would also seriously undermine the dollar as the “global currency”.
The digital Chinese system promises much faster transaction times – seconds as opposed to days – and far lower charges.
Unless the US can catch up with that and acquire a better system, then Washington’s influence will decline… and it won’t have friends left to help out.
