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Dollar is the safest asset

May 22, 2020

May 22, 2020

Forex turns to dollarDmitri Demidenko

Trump sometimes overacts, but the game is worth the candle

When you’re a losing a game, for example a presidential campaign, risky moves may be appropriate to the situation. Even if there’s a small chance that they will be repaid. The pandemic, high mortality rates, recession and March’s slump of US stock indexes undermined Trump’s chance of re-election in November. So, his accusations against the WHO and China look inappropriate only at first sight. In fact, they are quite to the point, at least from the point of view of game theory.

In the case of Trump, it’s hard to differentiate between mastery and idiocy. The trade war with China and Fed criticism proved the US president knows how to achieve his goals, even though he behaves like a girl.

- Is there any way to calm down a girl that got too nervous?

- No way, just run.

![LiteForex: Dollar is the safest asset][1]

One day Donald Trump rushed into the White House and started shouting that all were lazy good-for-nothings and he would fire them. Steven Mnuchin and Robert Lighthizer got so upset that they couldn’t finish their bottle of cognac.

Actually, the US administration works like clockwork and continues asserting the economy of the USA will see a V-shape recovery. Even if few are those who believe in it now. But stock indexes require this rhetoric, which means Trump needs it too.

The USA and its president got in a wrong place from where there’s no way out. They need to reopen the economy, at risk of facing another wave of COVID-19, and to win the election now that the coronavirus death toll exceeded the casualties of the Vietnam War, where 58,000 Americans had died.

![LiteForex: Dollar is the safest asset][2]

Trump seems to be overacting. He accused China of spreading misinformation in order to prevent him from winning “the presidential race”, “so they can continue to rip-off the United States”. We have already got used to this kind of accusations. Such a strategy let the States win the trade war, but is it appropriate now when Beijing has been making every effort to comply with the obligations under January’s agreement?

![LiteForex: Dollar is the safest asset][3]

Blaming others for one’s own mistakes is easy. Just have a try. The US president needs a scapegoat while Jerome Powell is no longer good for the role. So, he dreamt up his accusations and he says his temper changed for the worse but he’s got no money to fix it. Trump does have money, but he’s not going to spend it on that. Beijing is waiting and thinking to itself: “I’d tell you to go to hell, but I see you’ve been there already”.

China pretends to be a kind easy-going person, but this type of a person is the most dangerous one during pandemics. They spread viruses. It’s reserved unpleasant people that turn out to be the safest. Forex got used to Trump and turns to the US dollar as the world’s safest currency.

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Price chart of EURUSD in real time mode

![Forex turns to dollar][6]

The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.

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