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Wednesday, January 20, 2021

What did Trump do for the US during his presidency?

Since Trump is stepping down soon, let's do a recap on his political achievements.

Well, there was no question that he did more harm than good for the US. The Americans who voted for him had to pay the price for their mistakes.

Unbeknownst to him, he created a losing US-China trade war for the Americans.

Thus, USCBC is trying to persuade President Biden to change course by commissioning a study with oxford economics to prove that the US-China trade war harms the US.

Trump also broke the US-EU relationship which caused the EU to lose faith in the US and also compelled the EU to reduce its reliance on the USD.

This will greatly reduce the USD demand and make it harder for the US to raise debts to pay for its US$2.8T ($1.9T + $0.9T) stimulus package. The US has to print more USD to pay for its stimulus aids but doing so will exacerbate the USD depreciation. Moreover, Yellen doesn't want a weaker USD.

Therefore, the US interest rates will have to rise to attract USD demand but this is a conundrum for the US Fed because the US FED wants to maintain status quo until 2023.

The US FED and Treasury Secretary will have to work together to maintain US interest rates and USD but this will be a very difficult task. You cannot have the best of both worlds because US interest rates and USD are positively correlated.

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