Martin Armstrong Warns Devalued Dollar Will Crash the DOW

Legendary financial and geopolitical cycle analyst Martin Armstrong is back with a warning to President Trump, who is on record wanting a weaker dollar. Trump might try to force a lower value for the US dollar to help offset the trade deficit. Just this past week, Trump is demanding lower interest rates. Experts say this might also lower the value of the US dollar. Armstrong predicts, “Everything has an international value. If you lower the value of the dollar, then oil in terms of dollars will rise. Look at gold. It’s not making new highs right now because the dollar is going up, but chart it in Canadian dollars or Euros and it’s making new highs. . . . You dramatically lower the dollar and you are going to cause a crash–again. . . . It could be 40% to 50%.”

Armstrong has deep experience in the currency markets. In 1985, Armstrong was called in by the Reagan Administration about cutting the value of the dollar to spark trade. Armstrong warned if you cut the dollar, you will have a big crash within two years. What happened? Two years later, the stock market crashed more than 22% in one day in the infamous 1987 stock market crash. It is still the record for a one-day crash in percentage terms. Armstrong says, “In the end, they said we think foreign exchange had something to do with the crash. That was the best I could get out of them. They are not going to stand up and say, oh gee, we caused it (the crash) by lowering the dollar by 40%.”

Armstrong is going to write President Trump a letter warning him NOT to force the US dollar lower.

Read More: https://usawatchdog.com/devalued-dollar-will-crash-the-dow-martin-armstrong/