Recently, the U.S has engaged in a trade war with China, leaving U.S citizens wondering how this will affect their economy. In this installment of U.S.M.R Market Insights, Coy Wells discusses how the trade war could affect you.
How Will the US-China Trade War Impact You? – Video Transcription
Coy Wells: 00:00
Hello, my name is Coy Wells with USMR Market Insights and U.S. Money Reserve. Today we're going to be talking about the trade war that's taking place between the United States and China. A lot of individuals that are out there are ultra concerned about the trade war that's now taking place and it's very difficult to understand the trade war that is now taking place between the United States and China.
Coy Wells: 00:21
As most consumers know, the United States and China are two of the largest importers and exporters in the world. United States has always been one of the top leaders in regards to global economy. China is also encroaching on the United States in regards to that. Donald Trump, in my opinion, is playing a trump card, literally a trump card. What he's doing is he's trying to put additional pressure on the countries around us. He's doing this to be able to use this as a bargaining tool for other things that are taking place and that are underlying under the surface. One of those issues is us treasury bonds, and we've talked about us treasury bonds, but the negotiations under the table are taking place, but the trade wars is real.
Coy Wells: 00:59
If we remember, if we go back several years ago, it wasn't a trade war, it was a currency war in the United States and China and Brazil, Russia, India, and South Africa. The BRICS nations, as they call it, were struggling and fighting against United States in regards to currency, U.S. dollar versus the Chinese Yuan or the Renminbi. Right now, it is happening again, but it's in a different format, today it's in trade wars. The trade wars is going to be complicated and right now it's affecting the markets, affecting the markets globally, and it's affecting the markets here in the United States. What I'm recommending is that you stay focused, stay conscious on what's taking place in regards to the markets not going into all the details, we most likely won't see a lot of development. You'll hear a lot of talk, but when I mean development, actual trades take place, the trade war will fizzle out over the course of time.
Coy Wells: 01:44
The negotiations under the table between China and the United States will fizzle out and they'll get what they want ultimately in the end, and that will be probably U.S. Treasury bonds, increase in interest rates for foreign countries or maybe specific items will have tariffs placed on them. Don't worry about it. What you do need to worry about is how it is affecting the money in the market. As we've talked about it, these are small things that are taking place, but they're affecting our money here in the United States in a big manner. The world knows that the United States is heavily indebted. Approaching $22,000,000,000,000. We know that China is one of the largest importers and exports in the world and they are developing. Most Americans know that China has been developing and has continued to grow and continues to grow into getting more support from around the world and as they grow and they get more support, it starts losing impact on the United States. The United States is dwindling down, they're losing power, and right now what you're seeing is that struggle to continue to reign and maintain that number one spot in the global economic position.
Coy Wells: 02:43
Continue to watch your money as we've always asked you to do next week. We're going to talk about some things that are key and specific to the U.S. stock market. We're going to start talking about historical trends and what that means for where the economy's at today and where the stock market is at today. Most of us know that the stock market is long overdue. We're going to try to put that in perspective for you next week. As always, thank you for watching USMR Market Insights and U.S. Money Reserve, again, call the number on your screen to get more information about what we talked about today, but more importantly, the 2018 Annual Global Gold Forecast. And again, thank you for watching USMR Market Insights and U.S. Money Reserve.