TRUMP'S UNWINNABLE TRADE WAR AND GOLD

Trade wars are winnable, in a sense, if conducted by brilliant strategists who understand the win/win psychology of game theory.

That is not Mr Trump.  Mr Trump demands capitulation.  That is why his trade war is doomed to go on and on and on while all sides suffer, until there is total chaos.

Gold loves Chaos.

A long time ago I worked for a US financial concern in China.  I learned two things that nobody in the Trump Wolrd seems to understand.

ONE: The Chinese will never tolerate a loss of face.  No amount of pain and suffering from the Western perspective is worth a loss of face in the Eastern perspective.  Trump  demands a loss of face.

TWO: The Chinese time frame is different from the Western time frame.  And not just because they are totalitarian, or communist or however you'd like to categorize them.  Their time frame is informed by their view of life as a continuum.  They literally worship Ancestors.  For the Chinese if Mr Xi's great grandson wins the Trade War against some President who isn't yet born, that will be a great victory, no matter how much pain is suffered in the meantime.

Trump's time frame can be measured in nanoseconds.

Meanwhile, Trump is convinced he is winning the trade war.  Because in his mind he always wins everything.

The continuing chaos, both economic and social resulting from this bizarre personality disorder is ideal for gold.

Add to this a hyper-drive of global competitive devaluation of currencies (which was happening anyway, but on a much slower scale) and you have the perfect storm for gold.

It's only just begun.