When the 47th President of the United States of America took office in a few believed that he would raise the country’s economy and put the European Union in a corner.
Dinm, during the election campaign, almost nobody would have bet on the victory of the Tycoon. The reality, however, denied 90% of analysts and those who had provided for the decline, social and economic, of a nation whose slogan conceived by Trump is “Make America Great Again “; Of course, all that glitters is not gold and the long -standing issues to be resolved are a thorn in the side of the presidential staff with whom to deal every day.
Let’s go to degrees, we retrace these first eight months full of events and characterized, globally, by the “unpopular” choices internationally decided by the US government.
Duties and weak dollar
The first point on which Trump had no hesitation was the imposition of the duties to 170 countries, and the purpose is very precise, that is, to start putting the first piece for the coverage of the enormous debt now unsustainable, about 36 thousand billion dollars.
Moreover, the duties have two “intrinsic” functions of which the first is the aforementioned attempt to start restoring the debt, together with policies of shopping cuts; The second is to attract large capital and companies that invest in the American territory creating employment, in this case their products would be exempt from duties.
This is also valid for the same Big Tech themselves who have production offices outside national borders; In fact, the first results are clear, Apple, Nvidia, Intel and AMD, to start, planned investments for about 2 thousand billion (in total).
The Japanese government, among the first, announced investments in the USA for 500 billion.
All this is “subsidized” by a relatively weak dollar compared to the main foreign currencies of the competitors, and this is also one of the reasons why the Wall Street indices have splashed to the stars, in addition, of course, to purely economic reasons and the growth forecast of the stars and stripes companies.
Financial markets and inflation
A second reason that could push down the markets is a phenomenon that is worrying market operators and that sees many listed (medium -small) companies to buy huge quantities of cryptocurrencies whose value, until growing, makes the quarterly data of the positive companies and increases the value of the actions. This is an evident signal of a “bubble” underway because the growth of the value of the aforementioned companies does not derive from their core business but from financial operations not immune to risks.
Finally, inflation, a topic of very heavy disagreements between President Trump and the head of the Fed Powell which, prudently, is oriented towards rates of rates very diluted over time precisely by virtue that the duties policies can make the price level rise and cause a rise in inflation.
The purchasing power and the standard of living of the middle class
This is a clear sign of weakening of the purchasing power of the middle class, among other things already proven by two and more years of high inflation that forced the owners of variable mortgages (also with Cap) to huge sacrifices to make ends meet at the end of the month; Ditto for those who have had to contract fixed rate mortgages in the maximum peak moment of inflation.
This state of affairs, combined with the advent of artificial intelligence which, inevitably, will produce 15:42 unemployment, is not to be underestimated; On the contrary, it is necessary to constantly monitor the evolution of economic conditions and implement social policies aimed at sterilizing the phenomenon so that there is no risk “New 2008 without anyone noticing it. “
Trump’s policy explained
In light of what analyzed the decisions taken by the US government are clearer and more understandable and have the purpose of raising the country’s finances starting from the reduction of debt; This would allow you to allocate more funds to cushion any employment repercussions, despite the powerful investments at home promised by the four big techs.
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