The economies of the world might or might not suffer from the decay of the businesses spread across glob. Here we study U.S. economy and describe its prospects.
U.S. economy is improving as the government has decided to increase tariff/tax over importation where then the internal businesses will grow as their competitors are not present in the market. This can improve exportation and bourse market (stock exchange) as investors only see higher chances for the artificial growth . But, are things as easy as that? The answer is No.
This type of policy is an old one leading to temporary benefits and will have unfavorable consequences such as:
1- Fall of national currency against major world products (if we consider other currencies as products too)-most wanted ones such as oil and gas
2- Number one will lead to higher inflation rate, but a little inflation rate is necessary for the banks to absorb funds and pay higher interest rates to the clients and loans to the businesses. This is a wise circulation of money in a healthy economy.
2- Other partner countries such as China might do the same thing to U.S. as economy is bilateral: If you sell you must buy too other wise they will set high tax for importation from U.S. too in order to nullify the policy of the same kind.
3- The internal businesses improve but they lose competitiveness and in near future will fail to regulate their income/outcome numbers.
4- The other exporters will find a new destination market for their products and will replace U.S. with a new market where then getting back those sellers will cost U.S. higher in the future.
We don’t support liberal policies such as globalization in this article-which is against current U.S. policy, but the danger of closing the doors to the international markets has only short term benefits. We at ICDST have analyzed the last 12 months of U.S. trades and found outstanding numbers. Recently, we detected that the current fall of U.S. dollar is the result of the policies mentioned already. The EU virtually will have to change its trade deals with U.S. too. Let’s now rethink why U.S. left Paris agreement: This would happen sooner or later as U.S. decided to run its factories faster with a closed door to the global market. This is an old method of shifting the weight of the economical loss on the shoulders of other partner countries. The only problems with such policy are two with their solutions brought to you here:
1- The loss of currency becomes an evident factor of the economy growth; Interesting hah? This means as long as U.S. dollar currency falls, its internal economy will improve if the inflation rate is fixed nearly low. To hide this from international observers, the U.S. can absorb its own currency to balance product currency equation. To do so, they can sell large volumes of gold reserves a little cheaper than international price but of course must remove the resulting numbers from the yearly economy balance to protect the value of national currency against the internal products.
2- The international market might not tolerate such policies and would react to it as they will soon know how to block U.S. destination markets. The solution to the second problem of this interesting but old policy is to change the direction of world top investors into a channel which reduces the chances of non-central investments. The U.S. can trick the world if top world investors are interested in more focused/central investment in a single country (U.S.) with an almost middle term (5 to 10 years) prospect else the whole scenario will fail. One method of centralization of investments is to destabilize rest of the potential rivals economies by various means.
The future of the world economies are convolved in a way that escaping from the dominoes like consequences is impossible for all partners. But what makes a country a safe heaven for investors and what makes it a hell to its citizens? The answer is the prospect that a country might have a better economy. This is sometimes done by generating fake numbers. Whenever economies publish some numbers, we must hesitate to see if they’re real or not. The independent factors announced by world bank are still good parameters in studying the world economies including GDP/GDPPC, currency value, import export balance,… .
