Does Trump want to bomb fish?
1/ The U.S. government is extremely short on funds, and Trump and his backers have realized that if the deficit continues to be this high, U.S. debt will be at risk, along with the dollar. Therefore, they must find revenue.
2/ The route of cutting expenses has basically been declared abandoned; if the doge hundred-day reform does not reach Congress, it will be of no use.
3/ Tariffs are an important source of revenue; a 10% tariff means $400 billion, and a 50% tariff means $2 trillion in new government revenue! (Of course, imports will decrease, so the actual figures will be somewhat lower). This revenue is very important for the U.S. government.
4/ Because Trump also wants to cut taxes for the wealthy, which is his campaign promise to his donors that must be fulfilled.
5/ While balancing the government deficit, Trump also hopes to enhance the competitiveness of domestic manufacturing, which can be achieved through tariffs or devaluing the dollar. The problem with devaluing the dollar is that it does not help with the U.S. government deficit. Therefore, the final plan or result may be a mixed model: increased tariffs + simultaneous devaluation.
6/ Whether it's increased tariffs or dollar devaluation, both are negative for the U.S. risk market, especially devaluation - the first wave of adjustment on January 20 was caused by funds fleeing due to the dollar devaluation outlook described in the Mar-a-Lago agreement.
The news is a heavy bombshell; can't you see it? In the face of the trend, even the most powerful bombs are just fleeting. From the performance of Bitcoin last night, it simply cannot rise; the pressure from short sellers is too strong. In this environment, who will let you escape and recover your losses? Will the dealers lose money to you? Impossible.
In this world, there is no everlasting profit-making god like Dandan, only strategies to make small gains. When you think deeply and have wise guidance, you will progress quickly. As long as you practice diligently, you can achieve your dreams of freedom!
