Money and business

100 days of Trump’s return fluctuating the balance of the global economy and weakening the dollar

With the end of the first 100 days of Donald Trump’s second state, the American economy witnessed successive tremors represented in the decline in stock indicators, the weakness of the dollar, and an unusual rise in bond returns, what analysts considered a worrying indication of structural changes in the largest global economy, according to the “Prestige” website.

Bond returns are climbing instead of landing

Crises usually push investors towards US Treasury bonds in search of safety, which leads to high prices and low returns. But what happened recently was the opposite of the expected; Investors got rid of the bonds, and their returns rose, in an indication of confidence loss, which negatively affected the cost of borrowing and the US dollar.
Also read: The “IMF” expects major effects of Trump fees on the world’s economies

High cost for consumers

With the weakness of the dollar and the increase in bond returns, the cost of imported goods in the United States increased, a situation whose severity increases with the imposition of Trump customs duties, which in turn leads to more prices.

Trump shakes the foundations of the world order

For eight decades, the United States has led a global system based on liberal values ​​and common interests, but analysts believe that Trump, in just 100 days, has made a break with this system through aggressive commercial policies, reducing the allies’ affairs, and withdrawing from the umbrella of globalization.

A controversial expansion vision

Trump returned to the forefront outstanding national ideas, speaking about the American expansion in places like Panama and Greenland, and described Canada as “the fifty -first mandate”, which sparked widespread international discontent.
Also read: Including China .. Trump: Customs duties will be concluded with all countries

Offering customs customs policies

Trump imposed comprehensive customs duties on both opponents and friends, in a move that analysts said that it has restored the global economy to the pre -liberalization stage. After the sharp collapse in the market, some fees were suspended, except for those imposed on China, which is a strategic opponent of the United States.

Pg Conventions with opponents

Despite his escalating dialect, Trump expressed an openness to the conclusion of commercial agreements with China and Russia, as part of what he describes as “the art of concluding deals”, in a scene that reflects the contradictions of the economic policy of the White House.

Return to Economic Darwinism

Expert Melfin Leverler of the University of Virginia said that Trump’s policies are “a return to social Darwinism”, where the world sees as an open struggle to stay for the strongest, adding: “Trump does not believe in joint values ​​or international bonding even with the closest allies.”

Decreased confidence in the dollar

Since Trump’s inauguration, the dollar fell about 9% against a basket of major currencies. This sharp decline is unusual, especially in times of crisis, which was historically enhanced by the standing of the dollar as a safe haven.

The end of the era of globalization?

Analysts believe that Trump’s policies reflect the end of the globalization of the United States since the end of World War II. As China and the Americans lose confidence in the global economic system, a return to the previous liberal system seems unlikely.

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