- Will Trump Destroy the Euro?
by William Engdahl, http://www.williamengdahl.com/index.php
In his first few days in office as President, ‘The Donald’ has fired off so many Executive Orders and aggressive tweets that much of the world is dizzy. One policy that’s clearly emerging from the smoke of immigrant ban attempts, XL Keystone pipeline approvals and bellicose threats against Iran, is the Trump team economic agenda, called by Assistant to the President and Chief Strategist, Steve Bannon, “national economics.” The key targets so far are China and Germany, two nations with the largest trade surplus with the United States. A closer look, however, suggests Washington is preparing to launch what James Rickards, sometimes advisor on capital markets to the US intelligence community, refers to as “currency wars.” Aside from the obvious China target, the second and perhaps more important target is to destroy the Euro and its European Monetary System. Here Germany is at the heart, one reason, perhaps, why Chancellor Merkel seems to have severe gas pains whenever the name Trump is uttered.
United Anti-Euro Front
The new US Ambassador-designate to the EU, Ted Malloch, gave an interview with Bloomberg on February 5 where he said that he would bet on the euro collapsing and that he wants to “short the euro.” In the same interview he declared there was a “strong reason” for Grexit—Greece’s exit from the Eurozone. Earlier Malloch compared the EU to the defunct Soviet Union, saying the Union needs “taming.”
In another interview, Malloch declared that the Euro could collapse in the next 18 months. He told BBC, “I think it is a currency that is not only in demise but has a real problem and could in fact collapse in the coming year, year and a half…The one thing I would do in 2017 is short the euro.” Malloch, it should be noted, is no stranger to EU politics. He currently teaches as Professor in the business school of the University of Reading, England. Malloch has also served on the executive board of the pro-globalization Davos World Economic Forum in Switzerland and was a Senior Fellow of the Aspen Institute think tank. His remarks about the future of the Euro and of the EU itself are well-calculated.
Furthermore, with 17-year veteran Goldman Sachs partner, Steven Mnuchin, as Treasury Secretary, a person who has stated he has no problem labelling China a currency manipulator, the stage seems set for an all-out US Currency War aimed at destroying the Euro.
Make no mistake. I am on record since it became clear that the Euro as a supranational currency above nation states of the EU would become reality back in the mid-1990s, that the Euro idea as conceived then was a disaster in the making for Europeans and for the world. It was a construct by a cabal of European patriarchs around Jacques Delors, Giscard d’Estaing and others, to try to create a giant EU rival to the dollar as world reserve currency.