The article, Trump’s economic policies could destabilize the global economy basically, in a nut shell, discusses once again how Trump is speaking and making decisions without knowing or understanding the full magnitude of the situation. Though whose really surprised? The global economy is ever-changing and very fragile and yet our now President doesn't seem to see anyone else's needs nor problems. The economic system is very integrated and way above my head but that's ok isn't it? I mean I'm not the one making the important decisions. In reading this article, the over whelming vibe I get from this is that Trump is beginning to wonder if the globe still needs the economic leadership of the US.
One of the number things Trump always mentions, mocks, whatever you want to call it is China. And reading through this article it seems Chinas economic reign has begun to run its course. Yet instead of being sensitive to the fragile state China is in Trump keeps trying to blemish their name, "...keeps branding China as a currency manipulator intent on cheapening its currency". Trump is "undermining" the growth of China by proposing a expansionary U.S. fiscal policy. Our countries employment is higher than it has been in a long time yet he is wanting deeper tax cuts and increased "public expenditure on infrastructure and defense". This will raise interest and this will propel Chinas to higher levels.
China isn't the only economy vulnerable to the increasing rates of the US and the "higher dollar". "The Bank of International Settlements keeps warning us, the emerging market economies constitute a major risk to the global economic recovery because they have allowed their corporate sectors to have increased their dollar denominated debt by more than $3.5 trillion over the last eight years." 3.5 TRILLION dollars. I can't even fathom that much money, nor owing that much.
Raising rates and the dollar can be very damaging to the other emerging economies. Trump needs to stop turning his head away from what the world is doing and ignoring what is happening around us. Yes, we should focus on the US and what is best for us but we cannot turn our head from the worlds issues and needs. Because believe it or not, despite what Trump believes or wants, we are apart of the world and affected by what happens in it. A lot is going to happen in 2017, in Trumps term.
"In April/May, France is to hold its presidential elections in which the National Front’s Marine le Pen could do well; by the third quarter of the year, Italy is likely to have early elections that could see further gains for the populist and anti-euro Five Star Movement; and in September, German Chancellor Angela Merkel’s political authority could be further undermined by parliamentary elections." In a couple of months all this will take place and it could or could not affect the US negatively. Though he may get lucky and not have any issues his term. That he can keep going on vacations and keep branding other countries in economic trouble as cheap. But what if it does affect us? We'd have to start looking up and I fear we wouldn't like what we see.
(I'm sorry if this blog is boring, I am sick, and have the worst migraine, I believe, in the history of the world)
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