Market volatility is surging as the U.S. launches a new wave of trade disputes, fueling fears of a financial crisis. Tensions are escalating with China, Mexico, and Canada, while additional tariffs are set to hit the European Union. With filing deadlines for new legislation in many states already passed, policymakers have limited options to mitigate the fallout. As markets prepare to open this week, history warns that trade wars often lead to economic turmoil.
President Trump, citing the policies of President William McKinley, has signaled an aggressive tariff strategy aimed at protecting domestic industries. However, past trade wars—from McKinley’s tariffs in the 1890s to the oil shocks of the 1970s and the U.S.-China disputes in 2008—suggest that such measures frequently backfire, leading to recession, inflation, and market collapse. The parallels to today’s economic climate are striking, and investors should be prepared for extreme volatility.
The McKinley Tariff: A Cautionary Tale
In 1890, the McKinley Tariff raised import duties to nearly 50%, a move intended to protect American manufacturing. Instead, it led to surging consumer prices, international retaliation, and economic contraction. By 1893, the U.S. faced one of its worst depressions, as reduced trade and higher costs crushed businesses and consumers alike.
McKinley’s protectionist policies are often referenced as a success in Trump’s speeches, yet the reality is that they contributed to economic instability and set the stage for financial turmoil. When tariffs escalate into full-fledged trade wars, the consequences are rarely favorable.
Lessons from the 1970s: Inflation and Economic Stagnation
The 1973 oil embargo was not a traditional trade war, but it had similar effects. Energy costs quadrupled, triggering stagflation—simultaneous inflation and economic stagnation. The Federal Reserve responded with aggressive rate hikes, worsening the downturn. Gold and silver soared as investors fled depreciating dollars.
- Gold surged from $36 per ounce in 1970 to over $800 by 1980.
- Silver skyrocketed from around $1.80 per ounce to nearly $50.
Those who held physical metals preserved their wealth, while those reliant on fiat currency suffered.
The 2008 U.S.-China Trade Dispute: A Prelude to the Current Crisis
During the 2008 financial crisis, the U.S. imposed trade restrictions on China, exacerbating economic stress. The market was already fragile, and these policies further disrupted supply chains, slowing recovery. The U.S. trade deficit with China grew, and economic uncertainty pushed investors toward safe-haven assets.
- Gold surged from $800 in 2007 to over $1,900 by 2011.
- Silver climbed from around $14 per ounce to nearly $50.
The Looming 2025 Collapse: History Repeating Itself
With tariffs set to expand, the market is poised for another downturn. Inflation remains high, the Federal Reserve is hesitant to cut rates, and global supply chains are already fragile. Every historical precedent warns that trade wars lead to:
✔ Economic contraction
✔ Higher consumer prices
✔ Financial market instability
This time will be no different.
A Glimmer of Hope: Gold, Silver, and the Sound Money Act
Despite the bleak outlook, there is a way to protect against the coming collapse. Historically, gold and silver have provided a hedge against economic crises. Unlike fiat currency, which central banks can devalue at will, gold and silver maintain their purchasing power.
Gold and Silver Performance During Past Crises
- 1970s Economic Turmoil: Gold surged from $36 per ounce to over $800, and silver spiked to nearly $50.
- 2008 Financial Crisis: Gold rose from $800 to over $1,900, and silver followed a similar trajectory.
Parallels with Argentina’s Economic Reforms
President Trump’s economic strategy mirrors recent reforms enacted by Argentina’s President Javier Milei. Upon assuming office, Milei implemented aggressive austerity measures, reducing government spending and deregulating key sectors. These policies initially led to economic contraction—rising unemployment, higher poverty rates, and financial strain.
However, within one year, Argentina began showing signs of recovery:
✔ Inflation slowed
✔ The national currency stabilized
✔ Investor confidence improved
This historical precedent suggests that while Trump’s tariffs may induce short-term economic hardship, the downturn could last for roughly a year before recovery begins—a crucial factor for investors and businesses to prepare for.
The Sound Money Act: The Real Solution to the Coming Economic Collapse
In response to economic uncertainties, legislative measures like the Sound Money Act have been proposed to reintroduce gold and silver as legal tender, allowing Americans to spend their metals like cash and hedge against government monetary policy failures.
While the filing deadline for many state legislative sessions has already passed, legislators can still introduce the Sound Money Act as an amendment to existing legislation—and it’s up to you to demand they do so. You can review Citizens for Sound Money’s model legislation here:
🔗 Sound Money Model Legislation
If your state already has sound money-friendly laws, we need your help expanding and strengthening them. Making gold and silver legal tender ensures Americans can store their wealth in sound money and still conduct daily transactions without being trapped in a failing fiat system.
Take Action: Protect Yourself and Support the Sound Money Movement
1. Stack Gold and Silver Now
- Buy gold and silver at the lowest markup with our MetalMarkup App through Citizens for Sound Money’s Pioneer Membership. Members get access to some of the cheapest bullion prices online.
- But never ignore your local coin shop—many can beat online prices, especially for cash deals.
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2. Contact Your Legislators
- Tell them to introduce the Sound Money Act as an amendment—we need gold and silver to be legal tender in every state.
- Demand they remove sales taxes on precious metals, and ensure gold and silver are recognized as an alternative to the failing fiat system.
Conclusion: Time is Running Out—Protect Your Wealth Today
This is not speculation—this is economic reality. Every major trade war in U.S. history has led to severe economic consequences. With new tariffs on the horizon, the market will not wait for policymakers to correct course. Investors and everyday Americans must take proactive steps now to safeguard their wealth.
✔ Gold and silver have historically been the ultimate hedge against financial crises.
✔ The Sound Money Act offers a real solution to financial sovereignty.
✔ Time to act is NOW—before the markets react, before inflation worsens, and before sound money protections are delayed another year.
🚨 This crisis is coming. The only question is whether you’re prepared. 🚨