Comment on Zero Hedge:
Did you think it was possible to reorient the entire international trade environment without making any waves?
The last time anyone reoriented the world trade and monetary system was 1971. Do you know of the 1970s "Malaise"? It lasted for nearly a decade!
The time before that was 1933. The world, except the US, ended their attempts to return to the Gold Standard. There was a bit of a market dust-up from then until 1941. It was the Great Depression. Maybe you've heard of it?
The point of these to remember is that any time the monetary system enters a transition, the economy suffers until the transition is complete.
In 1933, there was a long, slow abandonment of Gold, the main reserve asset. That was not alleviated until Bretton Woods Dollar-Standard was agreed upon, and until the Dollars were overseas to support it (which they were due to Lend-Lease). That was the limit of WW2s role - to be a reason for the lend-lease distribution of dollars.
Thereafter the world economy depended on the US paying for defense, and funding reconstruction through asymmetrical trade deals.
In 1971 Bretton Woods ended and market disruptions continued until Petrodollar was established. Did you think it was coincidence that Standard Oil of California sold the company that would become Saudi Aramco in 1982 to the Saudi's?
But the basis of the world economy remained the same: US pays for all defense, and gives the world preferential trade deals. Note that in the absence of a physical numeraire this drained US Industry.
By 2025, the US was the main market for sellers. And most industries were gone. All wealth was risky credit and overly financialized. So, Trump ended that deal.
You will have market turmoil as long as it takes for a new numeraire to emerge. Maybe Gold. Maybe Bitcoin. Maybe both.
