Today, the tariffs on China begin in full force. Thursday and Friday of last week were low volatile days during a time when havoc normally would prevail in a market.
Remember that trader's motto we talked about? "When volatility is low, so will the markets go low."
This is always a good time to make adjustments in a financial system. We have been told to prepare ourselves through many economic articles already as of late for a 10 to 20% decline.
Here is how a Tariff Works. Tariffs restrict imports into the US by increasing the price on goods and services coming into the US.
This will make our trade volumes go even lower, and every move will have the capacity to change the direction of the market significantly.
This will cause more volatility in the markets and basically all hell will break loose. It will shake loose the weight of those derivatives weighing down our over priced stocks and bonds causing market adjustments.
And yes, we will continue to see currency and market adjustments during this time.
They may start out slowly at first, but they will speed up. NOW, you will see why Gold has an important place in a world wide economy especially when so much is at stake.
Gold will balance the scales of a Market that has lost control. It will be challenged to a fight, and the stress of that fight will take a toll. But, it will win.
The last I heard late last night was when you see it reach the upper 1300s an ounce, there will be no stopping it's influence on the market.
This week, you will have a ring side seat into one of the greatest matches you will ever see.
![](https://d1vof77qrk4l5q.cloudfront.net/img/db78f0f13d27df1dfec89a94af59c21ae64725d3.jpg)
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