Trump Victory Could Lead to Global Economic Disaster!

With 5 days to go until the US election, speaking exclusively to Politically Wasted one of the world’s largest companies has disclosed how great their fear really is surrounding a Trump Presidency. According to a reputable source inside the company, fears continue to grow about the globally devastating economic effects of a Trump victory on November 8th.

Even the tightening of the polls, suggesting a much tighter race than the global markets would like to see, has led to a seventh straight day worth of decline in the S&P 500 as fearful shivers were sent down the spines of investors on the global markets. These seven days represented the longest losing streak in the S&P 500 since the Eurozone disaster in 2011. The slide has led to much higher market grabs for safer assets such as gold and US government debt.

According to our unnamed source, this particular global company is expecting, come November 9th, a similar effect on the Dollar that we saw on the Pound after the Brexit vote, which can be seen below. The dramatic effect the Brexit vote has had on the Pound has not even needed Britain to actually leave the EU, just the uncertainty has been enough.

Value of the pound compared to the dollar since Brexit vote

So what would happen if the dollar had a sudden collapse? Well, global economic turmoil is almost certain. Investors would rush to other currencies, such as the euro, or other assets, such as gold and commodities, which we are already seeing happen in the European and Asian markets.

Domestically, interest rates would rise rapidly along with US import prices. Both of which would lead to high levels of inflation. In the long run high inflation and interest rates, teamed with the inevitable volatility, would all but destroy any business growth. Which in turn would lead to huge unemployment, sending the US wheeling into recession, or even a depression not seen since the 1930s with Hooverville camps being set up across America.

Featured Image credit to DonkeyHotey

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