President Trump is taking a lot of heat over his Plan of Reorganization which uses Tariff’s. That heat is coming from parties that have different priorities, such as Wall Street, the Deep State, and the media. It is therefore critical that we understand the big picture that Trump is looking at—and that picture is a lot darker/ existential than just getting reciprocal trade agreements with our trade partners, aka a “Global Trade War.” America is also fighting a Global Currency War with the BRICS (Brazil, Russia, India, China, South Africa) who want to establish a new currency backed by gold to replace the Dollar!!
President Trump has stated that “if the US Dollar loses its ‘Global Reserve Currency’ status it will be like losing a World War!!” Trump knows that the BRICS have declared a Currency War against the US after the Biden Administration’s freezing/theft of Russia’s sovereign currency of US Treasuries— which was going to be applied against the US funding of the Ukraine War. When the BRICS saw this proposed “theft”, they then knew their reserve currencies of US Treasuries were no long safe either.
The approval of Scott Bessent as US Treasury Secretary was a critical piece of Trump’s Currency War plans. Bessent is a widely acknowledged and respected global macro hedge fund manager and Yale professor with expertise in foreign currencies. Trump has in essence made Bessent his top General in this Global Currency War that is well underway and has given him the charge to do whatever necessary to protect the Dollar as the Global Reserve Currency.
Trump and Bessent agree that Tariffs will be the weapon of choice. Recently Bessent stated that the US holds the upper hand in its budding trade war with China and called the Asian giant’s retaliation this week a “mistake”, and that “now is a bad time to buy Chinese stocks.” Bessent explained that “with Tariffs we establish green, yellow, and red boxes. We tell these countries this is how you stay in the green box; this is how you get into the red box”. The green box includes things like shared values, shared economy, etc. For example, “we tell India that if you want to buy sanctioned Russian oil you will move to the yellow box and have to pay 20% tariffs—and if you keep buying that oil you’ll be moving from the yellow box towards the red box” which could include not selling anything in the US.
Trump is fighting a two-front war that has huge implications for America in the decades to come, and is truthful when he says, “I’m not concerned what happens to the stock market next quarter.”
Steve Gardes is a Certified Public Accountant (CPA) and Certified Valuation Analyst (CVA) with over 40 years of public accounting experience.
