The coming collapse of the U.S. Dollar and the Tariff Trap are creating a new reaction to the new inflationary environment. The 15-year cycle started in 2017 and will go until 2024. There will be a
50 % decline against the Euro and Yen. According to leading trackers of The Bisset Hedge Fund Group, this will signal the end of the strong dollar. The existence of a 15-year cycle defies the logic of the great Deflation in the United States. The United States has gone through a period of deleveraging assets for the last 10 year.
The two currencies growing at 14% per year are both the Euro and the Yen. The Euro and Yen will gain close to 50% over the period of 7 years. The consequence of this new appreciation will allow all investment that are denominated in Euro and Yen to have the highest rates of return. This signals the fact that Japan and Economic Union will have unexpected larger rates of return. The banks are out of touch with the great currency shake-up
The goods and service of the American economy will be cheaper due to the depreciating dollar. But in a world where tariff wars make it more expensive to buy goods and service. China is going through a negative business cycle that will collapse International GDP by 40%. The American importer will pay more for Chinese goods and Chinese will not benefit by holding US dollars. The American exporter will be selling at cheaper prices but the holder of the US dollar will lose 50% of their investment. The Currency risk is now a major factor in dealing with international countries.
The new Hall of Mirror will reflect shifting values for American denominated investments. The rising inflation coming through rate hikes and higher wages will begin a new 20 year cycle of inflationary wildfires The gold investor will have to hold gold denominated in Euros to gain maximum returns. How will you know that this will happen? Just track dollars against Euros and Yen.
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