The Threat of Protectionism


I read you every day and I am one of the fortunate people to have a financial advisor that attends your Conference every year in the US.

I am wondering how Airbus will be affected in the future as the Euro further declines.

Thanks, RM

ANSWER: This is one of the aspects that caused the protectionism during the 1930s. As the turmoil in Europe unfolded, capital fled to the dollar pushing it higher. This invoked protectionism also propelled by the decline in commodity prices. The protectionism began with the agricultural sector and then spread to other areas.

As the dollar is pushed higher, we will see protectionism rise again probably 2021-2022. European companies that do not have professional hedging departments will suffer greatly.

Latest Posts

Zelensky Secures $43B from NATO

The greatest salesman who ever lived scored big after the latest NATO summit. Ukraine’s Zelensky successfully convinced all NATO nations to pledge a collective $43 billion in funding to the [...]
Read more

Physics vs Economics

QUESTION: Mr. Armstrong, I find it remarkable that your model has always been correct in predicting the economy’s direction. This latest US inflation number shows that it was subsiding, cooling [...]
Read more