Protecting US Dollar Hegemony Is Behind Trump’s Tariffs

The markets were shocked this week by President Trump’s sudden announcement of his plan to enact import tariffs of 25% on steel and 10% on aluminum.  Analysts on both the left and the right side of the political spectrum  are espousing the “traditional protectionism is bad” mantra but no one other than Alasdair Macleod, a frequent guest on my radio show, Turning Hard Times into Good Times, has provided a deeper understanding into the geopolitical and economic dynamics that lie behind Trump’s tariffs.

Nor are analysts and talking heads making the connection as to why this move is extremely bearish for the dollar and bullish for gold. As Alasdair explains in his 3 ½ minute video, China which is now the world’s largest importer of oil and natural gas, is insisting on paying for its imports not with dollars but with the Yuan. On March 23, the Yuan-denominated oil futures exchange is scheduled to go live in Shanghai. For countries like Russia and Iran that also wish to exit dollars, they can hedge their Yuan receipts in gold on the Shanghai gold futures exchange.

These institutional moves are all part of a plan by more powerful natures that are tired of being forced to use what is, since Nixon removed gold from the dollar, a fraudulent currency backed by American military force.  The importance of these institutional changes in China and their potential bearish impact on the dollar and bullish impact on gold is explained clearly in this video presentation by Alasdair Macleod.

About Jay Taylor

Jay Taylor is editor of J Taylor's Gold, Energy & Tech Stocks newsletter. His interest in the role gold has played in U.S. monetary history led him to research gold and into analyzing and investing in junior gold shares. Currently he also hosts his own one-hour weekly radio show Turning Hard Times Into Good Times,” which features high profile guests who discuss leading economic issues of our day. The show also discusses investment opportunities primarily in the precious metals mining sector. He has been a guest on CNBC, Fox, Bloomberg and BNN and many mining conferences.