So many things happen around China and as a result the whole Asian region. The problems started right after the first package of tariffs was announced by the USA. A lot was expected by the world society and Chinese in general. And we have also expected some changes in the economy and overall situation in the region as well as in the economy of the emerging economies. But we never saw what is going on right now to happen. It seems that soon Chinese economy is going to take a lot of damage even despite all of the efforts of Chinese government to fix the problem. But, unfortunately recent changes are unchangeable and are going to hit Chinese economy even harder.

We already told you that Apple is going to face a little bump in production process because the conglomerate is going to pull their production sites from China. Well, it seems that a lot of American companies are going to follow the same path when it comes to production. And it seems to us that that Is going to be the thing to undermine Chinese economy and possibly plunge the whole region into financial crisis.

With American tariffs covering China with shade more and more the prices for production are going up and it is simply not as profitable anymore. Plus, keeping production inside America will give a bigger boost to American economy and will stop feeding the Chinese. That’s a winning situation for Americans. But what about Chinese? Will they ever recover from a change like that? True. Americans are not the only nation who put their plants in China, but pulling a factory as big and busy is surely going to leave a scar. So? What are we to expect?

For starters a slow-down in the Chinese economy. But the problem here is that the toll has already been taken on Chinese economy and more hits will only bring more damage to the failing emerging economies.

Does it seem to you that emerging markets are hit from all the sides? There is China in the east and Turkey in the west, right? With attacks like that a lot of the countries, traders and investors that take no part in trade war whatsoever are damaged as well. And we fear that if no measures are taken soon done damage is going to be beyond repair.

Austrian foreign minister Karin Kneissl got married over the weekend. And while the party took their time dancing and enjoying themselves at a wedding a lot of people asked themselves one question the seems to be unrelated to this joyous occasion – is ruble going to become a safe asset again? How are those two connected? With a very straight line, we would say. The ground for this question is the fact that Russian president – Vladimir Putin was among those, invited to enjoy the wedding. But Putin, as an official representative of Russia was considered to be an outcast. What happened and how will this influence Russian economy?

Our prognosis is that it will not influence the situation in any way rather than throwing shade on Austria’s minister. With all of accusations which have been looming over Russians the chance that Ms. Kneissi will find herself in some hot water are pretty high. Putin is considered by the first-world a dictator that leads two wars and supports North Korea. But what about the world trading situation? A lot of people like trading with ruble and that fact that it greased a two-year-minimum last week was not amusing to both – international traders and citizens of Russia.

The USA have announced the new package of sanctions that are going to fall upon Russians’ heads and sink ruble even lower so there is that. If you have been planning to log ruble in the nearest future, we would say – don’t. Too dangerous and unpredictable. For that matter those who prefer unusual currencies like Belarusian ruble and Kazakhstani tenge are also to be avoided as these currencies are tied to Ruble pretty hard.

As for Putin we can say only one thing – there is little that Russia government can do to stabilize the economy of their country at this point. But does this mean that ruble trading will never be safe again? But of course it will. As soon as Russia gets all of its troops away from Syria and Ukraine. It was said that inly in that case will the USA lift the sanctions to give Russian economy some air for stabilizing.

It seems that the world starts waking up and seeing what is really going on and what consequence it is going to have for the rest of the world in the long-run. but it seems that what we are seeing right now is not going to stay the same for the rest of the tensions’ existence. It may easily be so, that the situation is going to turn entirely on the source of the tariffs – United Sates and its immediate currency.

Right now we see the picture – solar that is getting stronger and stronger with only minor setbacks that don’t really last. Other currencies and assets are suffocating under the growing greenback and there is no doubt in Trump’s mind before slapping around new and new packages of tariffs. But in the long run the tariffs are going to lead to the lowering of world-wide trading as a whole. And America, being the most developed and strong economy of the world is going to feel that impact stronger than anyone.

And. Of course, dollar is going to be knocked right into the heart as well – import-export as well as the reliability of dollar are already under serious doubt. And what is going to be after the trade volume fall? We think that we can be as harsh as to say that American economy may face a collapse only seen in the beginning of last century.

Can American leave through the next great depression? More importantly can the world line through American great depression with all of the economies bring tied to and measured against the American currency.

We have to say, the perspectives are less than sunny for this one. And it also seems pretty unbelievable for now, but it seems that the world trading society thinks so. And that is why there is a lot of hope lies on US-Chinese talks on tariffs that are going to take placed somewhere later this month.