G-6 and SCO - which event is more important? (FH)
USD stands at 109.77 against the JPY. As a result, EUR-JPY is trading at 129.53. EUR-CHF oscillates at 1.1625.
At the weekend there was an attempt to hold a successful G-7 event. This attempt ended in a scandal. Eric Schweitzer, President of the DIHK, aptly describes the current situation: "Unfortunately," America first "seems to become more and more" America alone. "" We agree with Mr. Schweitzer. But we also note that "America first" was established long before Trump (eg pressure on Europe in the regime change policy). The externalized US policy under Trump is the catalyst for America alone!
What remained was a G-6 event, as the planned G-7 communiqué was taken over by the G-6. The problem with G-6, however, is that these countries represent a manageable size of just under 20% of world GDP.
The fact is that the so-called "West" no longer acts homogeneously outward. The US excitement forces the rest of the event into a new role in its outward appearance that protects and promotes its own interests. It's good. Whether the US, with 15% share of the world economy (falling trend) without G-6 can enforce its agenda as in the past, is open. This can be positive in terms of world peace.
Regarding the role that the "West" can play globally against this background, a dramatic de facto loss of power resulted over the weekend.
A counterpoint is being set here today in the western tendency to engage in self-reliance, as the weekend saw the organization of the Shanghai Organization for Cooperation in China, which was characterized by harmony. This merger is far more potent than G-6 or the US. Let's take a look at the participants and interested parties. In the latter group, the attractiveness of this structure can be seen and recognized.
At the meeting, President Xi Jinping said, "We reject a selfish, shortsighted, secluded, limited policy. We maintain the rules of the World Trade Organization (WTO), we support a multilateral trading system and the formation of an open world economy. We must abandon Cold War thinking and the confrontation of groups, and guard against actions that will bring about our own absolute security at the expense of the security of other countries. "
These words basically fit the G-6 communiqué. Here could grow together, which is economically meaningful and compatible. On the common economic interests, peace policy and cultural exchange can be better realized than through confrontation and regime change, the author of these lines is convinced.
Xi said after Trump caused a scandal after the G7 summit and withdrew US approval of the already-communicated communiqué. The final statement of the G-7 stated that the participants were in agreement on the need for free, fair trade for mutual benefit. Protectionism was also declared a battle.
Which event is more important? G-6 or SCO - How about G-6 and SCO - that would have mind and power and a Silk Road (...)!
Regarding the USA, we offer the following chart.
It should be noted that consumption is correlated with almost 70% of US GDP. Here is a clear statement regarding the quality of sustainability of the US economic model delivered. It is not a good statement.
US Treasury: Public New Debt from January 1, 2018 to June 7, 2018 at $ 607 billion, or in an annualized form, with a pathway approaching 7% of GDP! Ergo, is US foreign policy an expression of structural economic strength or weakness?
Currently there is a scenario that favors the EUR against the USD. Only falling below the support level at 1.1490 - 20 neutralizes the positive bias of the euro.