Musk vs Trump: Economy at Risk?

● Musk’s Hidden Agenda-Worst Crisis Ever?

Let’s Read the Storm in Politics and Economics: Trump and Musk

The Beginning and Background of Major Conflicts

The days when their friendship returned like a boomerang are already a thing of the past.
Recently, trust between the two has completely collapsed due to the clash between Trump and Musk on Twitter.
The situation changed rapidly as Musk sharply criticized Trump’s policies regarding tax cuts.
In this process, Trump made explosive remarks that Musk could negatively affect government subsidies and Face X government contracts.

Political Conflicts and Their Ripple Effects

The quarrel between the two has spread beyond a simple personality fight to key issues in the U.S. economy.
Trump strongly criticized Musk’s side, mentioning the past Epstein file incident,
Because of this, Musk warned that the risks to the operation of major companies such as Tesla and Space X would be amplified.
The extreme emotional confrontation between the two sides is expected to act as an element of instability not only in the U.S. stock market but also in the global financial market.

U.S. Financial Difficulties and Debt Problems, and the Paradox of Key Currencies

The U.S. national debt amounts to $35 trillion, with annual interest payments exceeding $870 billion.
Thanks to the dollar’s status as a key currency, the seemingly solid financial system is now sending danger signals.
In particular, Musk argues that the government’s tax cut policy and fiscal soundness are heading in an irreversible direction.
In addition, the fact that major investors, including Japan and China, are losing their appeal for U.S. Treasury bonds is a major problem.

Trump’s Fiscal Policy and Monetary Policy Dilemma

Trump tried to solve the financial problem in the short term through tax cuts and spending cuts,
As a result, a long-term deficit is inevitable.
This is intensifying the pressure on the Fed to change its interest rate policy.
Raising interest rates increases the interest burden, and lowering interest rates risks fueling inflation.
As a result, the conflict of interest between Washington and the Fed is intensifying, acting as an element of instability in the U.S. financial system.

Changes in Internal Financial Structure and Future Strategy

The U.S. is moving in a direction to increase the capacity of banks to purchase Treasury bonds by easing SLR regulations in the domestic financial market.
This is a strategy to solve the Treasury bond problem through domestic demand in addition to major demand countries such as Japan.
In addition, there is a move to induce stablecoin representatives to hold U.S. Treasury bonds as cash equivalents.
These changes are expected to be an important turning point for U.S. manufacturing and financial stability.

Wide-Ranging Impact on the Overall Economy

Political conflicts and fiscal policy instability do not just stay as a fight between two giants
It can have ripple effects on the global economy.
The conflict between Trump and Musk is not only the U.S. but also the global stock market, bond market, and monetary policy.
It is an element that adds significant uncertainty.
In the future, the biggest threat to U.S. stocks and Tesla after 2025 is likely to be the two figures’ sudden actions.

Summary

U.S. Economy, Tesla, Fiscal Policy, Treasury Bonds, Inflation
– Open quarrel between Trump and Musk begins
– Musk points out the tax cut plan and government fiscal soundness issues
– Trump retaliates against Musk’s criticism and threatens to review government subsidies and contracts
– The U.S. national debt and annual interest burden act as a major risk factor in the financial system
– The conflict between the Fed’s interest rate policy and the government’s fiscal policy is expected to intensify
– Restructuring of internal financial structure is being attempted, such as easing bank regulations and stablecoin policies

[Related Articles…]
Trump Conflict Intensifies
Musk's Economic Outlook

*YouTube Source: [월텍남 – 월스트리트 테크남]

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● Coin Spotlight- Post-Government Shift

Impact of Domestic Political Changes and Capital Market Revolution on Stock Market and Virtual Asset Investment

1. Presidential Election and Inauguration of New Government

Following the presidential election on Tuesday,
the Democratic Party of Korea has taken power.
Significant changes are expected across the economy with the inauguration of this government.
In particular, policy announcements to boost the stock market are drawing attention.
A strong commitment to reform for shareholder returns and corporate restructuring is evident.

2. Push for Amendment of the Commercial Act and Changes in the Capital Market

With the inauguration of the Lee Jae-myung government,
the amendment to the Commercial Act is being pursued again.
The key content of the amendment to the Commercial Act is
the specification of directors’ fiduciary duties to consider the interests of all shareholders.
The previous government faced criticism for decisions favoring major shareholders, diluting corporate value, and undervaluing Korean stocks.
Strengthening the treasury stock retirement system and expanding public disclosure are important points for shareholder return policies.
These changes are expected to contribute to the long-term stability of the capital market and the fundamental improvement of corporate structure.

3. Easing Virtual Asset Regulations and Introduction of Bitcoin Spot ETFs

The new government is expected to ease regulations on the virtual asset market.
In particular, the introduction of Bitcoin spot ETFs is set as a top priority.
Under the current Capital Market Act, virtual assets are not included in investment-permitted products, limiting securities companies’ cryptocurrency trading.
Now, with the amendment to the Commercial Act and the reorganization of related laws, the virtual asset market is expected to be greatly 활성화되어, including the issuance of actual spot ETFs and KRW-based stablecoins.
The supervisory and regulatory roles of the Financial Services Commission and the Bank of Korea are also expected to become important issues in the future.

4. Future Market Prospects and Investment Strategies

The business community is showing expectations for the revaluation of undervalued stocks and low price-to-book ratio (PBR) stocks through the amendment of the Commercial Act and capital market reforms.
Improvements in ETF and virtual asset-related systems are expected to have a positive impact not only on the stock market but also on the capital market as a whole.
It is important to pay attention to the policy changes and the amendment to the Commercial Act of this government as key issues for economic outlook and global investment.
It is important to carefully check the implementation of future policies and market reactions and establish investment strategies.

Summary

Overall, with the Democratic Party’s taking power after the presidential election, extensive policy changes are beginning in the economy and stock market.
The main contents include the promotion of amendments to the Commercial Act and capital market reforms, the establishment of new regulations that consider the interests of all shareholders, and discussions on mandatory treasury stock retirement.
In addition, deregulation is expected in the virtual asset market, including the introduction of Bitcoin spot ETFs and the issuance of KRW-based stablecoins.
These changes are important points in establishing investment strategies that reflect key SEO keywords such as economic outlook, stock market, capital market, virtual assets, and ETFs.
Depending on future policy implementation and market reactions, opportunities for revaluation of undervalued stocks are expected to expand.

*YouTube Source: [서울경제TV]

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