Trump may know how to build golf courses and hotels, but he definitely doesn't qualify as an expert on international trade. With all the minefields out there, he could quickly bumble us into a huge crisis.
Rickards says that despite the apparent calm of recent years, the current global financial system is actually extremely fragile and tenuous, with over a quadrillion in overlapping derivatives and leveraged financial instruments out there lurking and waiting to blow up. Prior to the 2008 crisis, Buffett accurately called these 'financial instruments of mass destruction'.
Rickards said that in the recent mini-crash there was a serious lack of liquidity apparent. Acute problems in one part of the financial market can quickly spill over into others and have a cascading effect. That's what happened in 2008 with subprime mortgages, but it quickly spilled over into everything else thanks to the huge mountain of derivatives piled on top of the underlying assets.
The annual US military exercises near Korea will begin in April, and now we have the beginnings of a trade war. I've got a bad feeling about this..
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