According to a recent UN study, it became known that the escalation of the trade conflict between the US and China could trigger a new global troubles, including a currency war. It is reported by CNBC, reports the “League news Russia”.
This work is called “Trade war: pain and profit”. It talks about the consequences for the world economy, which will lead to escalation of a trade war. It can occur, if by March 1, China and the United States will not negotiate and will not sign a comprehensive agreement. In this case, Washington will raise the current 10-percent duty on Chinese goods with a volume of $ 200 billion per year to 25 percent.
In this case, the Central banks sell the currencies of their countries, changing them, as a rule, exporters earned dollars for their reserves.
As a result, the value of U.S. Treasury bonds increases, and their yield is reduced, leading to a drop in interest rates in the us market. However the countries themselves, weakening the currency for exporters (their products become competitive in foreign markets due to lower foreign exchange costs) begin to experience difficulties in servicing the foreign debt, denominated in dollars.
According to Lavrov, the Russian side expressed concern that the development by the Americans of ammunition of low power, such as a new nuclear warhead W76-2, lowers the threshold of use of nuclear weapons. And this, in turn, stressed the head of the foreign Ministry, increases the risk of a nuclear conflict.
In addition, the PACE in its resolution on the Kerch Strait have shown throughout Europe to the Ukraine and what’s happening now, said Dmitry Belik, the Deputy of the state Duma of the Russian Federation from Sevastopol.