In the second tenure of US President Donald Trump’s office, the reality of Washington, DC and the world has changed the United States.
The fastest speed of departing from the common man – the most stable associate in the United States, with the decision of Russian President Vladimir Putin, is intentionally to target Canada, with a higher rate than China, and the US Gaza business, connecting Greenland, and ending the war in Ukraine.
Trump’s rates may not be the most shocking foreign policy of his second administration, but in the long run, they can be the most resulting in the long run.
Like all its caption foreign policy movements, their plans for rates are part of their overraining game plan to shape the US economy. They say they will raise prices on European, China and the United States to bring the product back home and “America Great Again”.
But in this example, Trump’s courage eventually caused the US to USD .It is unlikely to bring him to his long -term targets due to the inadvertence.
US production costs are quite high in Europe, leaving Asia, and thus the immediate effect of its rates and the threat of prices must meet the expectations of inflation, as well as start a new cycle of US dollar power. It seems that strong dollars will weaken inflation, rates and threats and will increase the cost of trade, which will reduce this potential benefit. In addition, the Federal Reserve of the United States has paused its rate-cutting cycles, despite other high central banks like the Bank of England and European Central Bank, as the need to promote the increase in trade dangers has increased the fear of new inflation.
The structure of the international economic system is that the US dollar already dominates, which means that high income for American property will only strengthen the dollar.
So long, the global demand of American currency means that its primary export is its currency and corresponding financial products. This unique “Excessive privilege“This has enabled Washington to operate both trade and financial deficit without any large drag on the economy.
The importance of protecting the system is increasing, the Russia and China-supported “BRICS” organization have threatened 100 per cent and other action against the countries trying to hug and hug.
Trump today is not one of the financial policies to support the American Home Production, but as one of the new rules of international financial order. In a nutshell, the President wants to make sure that the US dollar can trade at a weak value compared to other currencies and the currency – and especially the American government security – without reducing the international economic system.
This discussed whether the Trump administration had aimed at reaching new dollar stabilization deals with other governments and their central banks, known as the Reagan administration’s Plaza Ord Cords and Louvre Accord in the 1980s. Indeed, the Trump administration is trying to reach the so-called “Mar-e-Law” agreement, has become a matter of frequent speaking among economists.
Yet such a movement will be extremely difficult, because the Regan-Yoga dollar contract, where the focus was on Japan, will have to focus on any such agreement today. At that time, the United States saw the weakness of the Japanese Yen as a threat to its interests and took action to correct it. It was not a big challenge because it was Tokyo – and still – a close associate. China, however, is nothing. In any such negotiations and the legacy of the deals of the 1980s in the 1980s – strengthening the yen as a result of this agreement is not seen as the main factor in the subsequent “lost decades” of the country – it is often taken into account by Beijing.
Trump is ready to do weapons and achieve long-term objectives, though they have nothing to do with the trade. Even the most stable our friends should prepare for the threats of threats going beyond the rates. The threat of “Treasury, Banking and Financial Approval” against Colombia in the late January was made clear if they did not accept the military aircraft, reserved for the state -of -the -art states like North Korea, Iran and Russia.
As the US dollar, its government security and the focus of the financial system for the global economy, such dangers are more financially destroyed than the rates.
Yet the desire to use such threats against the Trump administration’s allies is that there is no hope of financially supporting China to financially support its allies. Other supporters to reduce Beijing and the dollar system will try to exploit this weakness. For example, this is another important goal rather than weakening NATO for Putin-since he was fully attacked by Ukraine, he has mentioned almost one and a half dollars as mentioned by the military alliance.
Trump is trying to redevelop the international financial system for the benefit of the United States, but so far his actions show that his understanding is excellent. It was never clear than asked about NATO’s expense level in Spain immediately after the inauguration, he misled the country as a member of the BRICS Block.
The US dollar system was not completely American. It was widely born in Europe, where banks began lending to dollars to meet regional finance needs and demands. Therefore, if the foreign policy unity in the US and Europe is considered “re -Great the United States”, Trump could inadvertently terminate the dollar system responsible for the power and greatness of the United States for decades.
The main difference between those countries like Spain and members of the European states is that BRICS members are earning almost all international trade surplus, exporting more than importers, while they almost always maintain significant capital controls.
On the other hand, the trade power of Europe is not enough to maintain the level of government expenditure in most European Union or the United Kingdom. Or this is not in Japan, whose debt-to-GDP diagram is higher than any other leading economy. In turn, after the United States, these historical associates are the main borrower in the international capital market, while the capital of additional earnings like many BRICS members who try to invest in it. That is why China is the first to be the United States of the United States despite being a Washington-Bearing geographical-political competitor.
Trump’s movements – such as the rates directed in the Allies and the attached hazards – weakens this system. His geographical -political dangers, which are intended to be redevelopment of the financial system, can be targeted at Beijing, but its view is not only to break the political alignment between the United States and its historical allies, but also their financial alliance.
If Trump was successful from his point of view, it will have some benefits for the production of the United States. The current 10.2 per cent of the US -based domestic production will definitely appeal to its basement. But the risk is that he has flown the US dollar system to do so. And this will be devastating for the US economy, most likely not only inflation but also a dramatic recession.
The opinions expressed in this article are the author’s own and it is not necessary to reflect al -Jazir’s editorial role.
