USA - challenge for the rest of the world! (FH)
The euro is now opening against the USD at 1.1798 (07:10) after the low of the last 24 trading hours at 1.1714 in the European deal. The USD stands at 109.90 against the JPY. As a result, EUR-JPY is trading at 129.65. EUR-CHF oscillates at 1.1616.
We have repeatedly warned in this report that the US is undertaking an attack on the global organizational chart, which forms the basis of the international division of labor and thus forms the basis for the functioning of the global economy in the present constellation.
Ergo, the US plays with self-interest with the path of the world economy and the stability of the markets as well as of the system. The US is increasingly becoming a burden to the world and a significant challenge.
On the facts: The economic adviser Larry Kudlow said yesterday that the US no longer feels bound to decisions of the World Trade Organization. Actuality: "Multilateral international organizations will not determine American policy."
Mr. Kudlow has made it clear that the US does not accept agreements and treaties that conflict with their interests.
Breaches of contract and non-recognition of international legal bodies, such as the International Court of Justice in the Netherlands or the International Tribunal for the Law of the Sea in Hamburg, are known and discussed here.
The same applies to international law. Infringements of third parties are loudly persecuted. Proven violations of international law by the United States fall victim to asymmetric perceptions.
What does that mean for parties to the US? What are the hedges that include such contracts and agreements worth?
On the subject of trade:
Ultimately, US trade deficits result from a deficit in US competitiveness. Thus, the current course of the US is a departure from the principle of free markets and the free exchange of goods, which sounded so loud in the recent past from the US (teaching of Continental Europe by the United States for decades) to open up new markets for themselves.
We are faced with a U-turn of 180 degrees here. This makes it clear that US policy has a distinctive character trait, egocentric and value-free opportunism for its own cash flow! By the way, dear Transatlantic, is not in the catalog of values of the West.
Conclusion about the USA:
If the world ex US (85% of the global economy) does not use this US policy, which is in fact a subordination to US interests (= totalitarian US claim), as a catalyst for US isolation, we are much hotter and less free Times ahead, as if you face this challenge. The upcoming G-7 meeting has our full attention in this regard.
To those companies that have interests in the US market: What is more significant 15% of the world economy or 85% of the world economy? What legal risks does the US market include?
Wrong developments are tackled in the beginning!
The following message fits in with this topic complex:
It deals with the topic of the nuclear agreement with Iran and the sanctions policy. Washington sends out its emissaries. According to diplomatic circles in the EU, US diplomats put pressure on other states in the dispute over the nuclear deal with Iran. Diplomats said that US Secretary of State Andrew Peek, responsible for Iran and Iraq, had been to the Czech Republic and Hungary.
The tone of a high-ranking European diplomat: "The Americans are on tour and go everywhere, they are dogmatic." European response so far, which we absolutely welcome: "If you come to us to tell us, as we American law here you are not welcome.
Yes, the US poses a challenge to the rest of the world. They are forcing risks to the further development of the global economy and the stability of financial systems and financial markets against the backdrop of massive qualitative deficiencies in their own economic structure (no sustainable self-sustaining elements of growth) the US - credit-driven model).
There is nothing more to say.
Yesterday released US data:
The US trade balance delivered a deficit of US $ 46.2 billion (US $ 49.0 billion forecast) as of April, following a previously -US $ 47.2 billion (revised from US $ 49.0 billion).
US productivity rose 0.4% in the first quarter, outperforming the 0.6% forecast.
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.
© Folker Hellmeyer, Solvecon