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● Dollar Diplomacy, U.S. aiming to cripple China

Analysis of Recent Global Economic Trends – Decoding Exchange Rates, Trump’s Policies, Tariff Strategies, and More

1. The Beginning of a Sharp Exchange Rate Drop and Dollar Weakness

The exchange rate is falling, which is not necessarily a good sign.
In early April, it was about to reach 1,500 won, but there is a sudden possibility of falling below 1,400 won.
The main reason is the sharp decline in the dollar index.
Loss of confidence in the dollar and movements to escape U.S. assets are being captured simultaneously.
Rising Treasury yields and strong Treasury sell-offs are also behind this.
These exchange rate fluctuations can have a major impact on the global economy, exchange rate volatility, and U.S. manufacturing.

2. Stock Market Crash and Escape from U.S. Assets

The stock market is also plummeting in the risky asset sector.
The S&P 500 has fallen nearly 20% since peaking at 6,000 points.
Trump’s tariff policy plays a decisive role in the stock market collapse.
The simultaneous decline in bonds, the dollar, and the stock market is similar to the financial crisis of 2008 or the early stages of the interest rate hike in 2022.
There is a clear trend of wealthy foreigners and institutional investors gradually exiting U.S. assets.

3. Trump’s Policies and the U.S. Manufacturing Revival Strategy

President Trump is pursuing a weak dollar policy to address the problem of lost manufacturing jobs in the United States.
According to the Steve Miran Report, the decline of U.S. manufacturing due to the strong dollar is the main culprit.
Currently, the U.S. dollar is overvalued by more than 19%, which is unfavorable to U.S. manufacturing.
U.S. manufacturing can recover and jobs can increase if a weak dollar is adopted.
In this process, the tariff strategy plays a key role.

4. Tariff Strategies and the Reorganization of the Global Trade Order

The Trump administration aims to promote manufacturing in the United States by comprehensively readjusting existing low tariff rates.
Tariff increases may cause inflation in the short term, but the burden is shifted to other countries.
By maintaining high tariff rates, the United States weakens the export competitiveness of competing countries such as China and seeks to revive its own manufacturing.
There are moves to minimize consumer price increases and corporate profit declines through a phased tariff increase strategy.
At the same time, the United States is trying to maintain confidence in the dollar as a key currency in the global financial order by managing trade deficits and fiscal deficits.

5. Future Prospects and Investment Strategy Considerations

Global economic uncertainty is expected to increase due to policy changes, tariffs, and exchange rate fluctuations in the United States.
In addition to short-term financial market volatility, there is a high possibility that strategies for U.S. manufacturing recovery and maintaining hegemony will begin in earnest in the medium to long term.
From an investment perspective, it may be wise to diversify risk through stock portfolio adjustments, investments in dividend stocks, or value stocks.
In the midst of overall economic uncertainty, we need to closely monitor economic trends from various angles, including the global economy, U.S. manufacturing, exchange rate fluctuations, Trump’s policies, and tariff strategies.

Looking at recent global economic trends, a sharp drop in exchange rates, a weak dollar, and a stock market crash are occurring simultaneously.
All of these phenomena can be explained by the escape of U.S. assets, the weak dollar policy pursued by the Trump administration, and tariff strategies.
Based on the Steve Miran Report, the strong dollar is the cause of the decline in U.S. manufacturing, and a weak dollar is being used to revive manufacturing and restore jobs.
The tariff increase strategy is expected to act as a key means of transferring the short-term inflation burden to other countries and inducing growth in U.S. manufacturing.
Investors need to carefully consider portfolio adjustments and other factors in this uncertainty.

[Related Articles…]
Exchange Rate Fluctuation Forecast

Analysis of Trump's Tariff Strategy

*YouTube Source: [Jun’s economy lab]

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