Trump's Council Of Economic Advisors Chairman Lays Out ‘User's Guide to Restructuring the Global Trading System’
A few years from now, you might be really glad you've read this...
The gold price rebounded on Tuesday after Monday's sell-off, and the futures are currently up $25.
Meanwhile, the silver price is having a strong day, up 49 cents, and once again back over the $33 level.
The silver move is particularly intriguing in the context of the recent rally in the dollar index, which has risen from below 98 on April 21, to 100.78 even after declining today.
However, as I mentioned yesterday, I wanted to touch on something we discussed last week, when I highlighted a thought process from fund manager Michael McNair. Who wrote about how he’s been seeing indications that what Stephen Miran, the chairman of the Economic Council of Advisors to President Trump wrote about in his ‘User's Guide to Restructuring the Global Trading System,’ might be playing out now in real time.
Keep in mind as you read this, that Miran’s paper was written in November of last year. A month before Trump named him for the position of chairman.
It's an interesting paper, and if you’d like to read the entire piece (it's 41 pages) the link is here.
Although I went through and pulled out what I thought would be most directly relevant to gold and silver investors, so let’s get started.
‘The desire to reform the global trading system and put American industry on fairer ground vis-à-vis the rest of the world has been a consistent theme for President Trump for decades.
We may be on the cusp of generational change in the international trade and financial systems.’
Interesting to hear him mention that this has been a theme for Trump for decades.
Of course he then also says we may be on the cusp of generational change, and now he’s the chairman of the Council of Economic Advisers to the Trump administration.
‘The root of the economic imbalances lies in persistent dollar overvaluation that prevents the balancing of international trade, and this overvaluation is driven by inelastic demand for reserve assets.’
‘The root of the economic imbalances lies in persistent dollar overvaluation.’
So not only does he feel that the dollar is overvalued. And not only does he feel it's persistently overvalued. But he even says that this overvaluation is the root of all economic imbalances.
