Econolodgestocktonca.com – Dollar is falling, investments are hazy. The global economy is threatened. Since October, not only the bond yields are rising, but global equity prices have been increasing by 7% as well.
Such bad economic times. The trade deal between the US and China are still cloudy. Trump can’t seem to make up his mind about this trade deal. He wanted to make America great again; however, it looks like he doesn’t have any idea how to make it happen.
The falling of the dollar is a warning signal for the third world countries. It has not shifted decisively… yet.
Since 2014, the US’ economy hasn’t been robust. The dollar has fallen. Stocks are falling. The increasing of homeless citizens and unemployment have been such issues that America failed to resolve. Since then, the investments also have been decreasing. Debts are increasing. The price of dollar assets is driven up by capital inflows. The only thing that could save America’s financial crisis is technology companies.
But in 2019, America’s industry got deteriorated, trade wobbled. Yet, they still look okay if we want to compare with other countries. America’s stocks might have fallen where it leads to the decreasing of GDP (Gross Domestic Product).
This problem that America is facing is faced by the global economy as well. Those countries who rely on America’s dollar to support their country are at risk. Not to mention political risks. Both America and China are facing political problems. China with Hong Kong protests and America with constitutional issues.
Dollar’s position as the leader in currencies is at risk. Yuan might as well replace it now. Now, the US is in debt to China with the number that reaches $1,11 trillion as of 2019.