Stupid logic, easy on the brothers! The core of the tariff stick is indiscriminate plundering, helping the United States solve its debt problem, making America great again (dealing with Biden's mess) scraping bones to heal! Uncle Trump might hope for the most: 1. Increase tariffs in April; 2. In April and May, major economies will come to him asking for favors, with the U.S. negotiating interests for the upcoming interest rate cuts and balance sheet expansion. 3. By June, after discussions are nearly done and the stock market has also dropped significantly, he will start a large-scale liquidity injection to harvest again. Of course, whether this can materialize still depends on the Federal Reserve, as well as inflation data, and involves a game of chess. He has a total of 3 steps: 1. Wield the tariff stick to burst the stock market, including his own, which is somewhat similar to a man-made financial crisis, maintaining U.S. liquidity while creating a global liquidity crunch, undermining other countries' economic expectations; 2. Forcing countries to negotiate with him, making extortionate demands, and compelling them to take sides; 3. When the stock market crashes and asset prices plummet, forcing the Federal Reserve to cut interest rates. He can then quickly lower rates and expand the balance sheet under the guise of 'saving the market.' The dollars released will be used to buy up global assets. This way, the dollar can remain strong while diluting the debt.
Thus, the ultimate goal of King Trump raising tariffs is to prepare for interest rate cuts and balance sheet expansion in the second half of the year, first smashing down undervalued asset prices, allowing the dollar to enter, ultimately aiming to solve America's debt problem.
As investors, what we need to do is go with the flow! The worst outcome I can think of is: Trump's term ends, and everything will return!
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