Big Trouble as Little China Tariff Sparks Stocks, Dollar Reversal
Can this country handle another war? We're not talking Iran. The real money is looking at the trade war we may have on our hands with China.
Today, after two decades, the U.S. Commerce Department slapped a tariff on paper from China and other "non market" countries. What’s the play as the US turns protectionist?
Dylan asks if it’s possible China might retaliate and unload dollars.
Eric Bolling says its probable. China is holding $350 billion in treasuries but after this, they’re not going to buy any more. Eric adds that will send the dollar lower and the trade is buying gold, because gold benefits when the dollar goes lower.
Tim Strazzini echoes that he too would buy gold and silver. If the US moves down this path the Chinese will move into non-dollar denominated assets, says Tim.
Dylan Ratigan shows a piece of his interview with Commerce Secretary Carlos M. Gutierrez who said “We don’t like protectionism… what we are saying here is we want to play by the rules and we’re asking other countries to play by the same rules.”
That video clip sets the guys off – Jeff Macke says he’s a politician and he’s rattling his saber.