Today I want to share about 04 major things that Trump will do in the near future. If only 01 of these 04 things is related to you, there is a good chance you will be able to double your assets soon.
1. Making other countries poorer
Why do the American people not choose Biden or Kamala Harris but choose a businessman like Trump to return? Simply because they want Trump to apply business management methods to govern the U.S., turning the U.S. into a company that attracts global investment. To achieve this goal, Trump and entrepreneurs understand that increasing income, reducing spending, and reducing bad debt is why Trump applies global sanctions to prioritize American interests. Every time a war occurs, the U.S. must deploy troops, or when allies feel unsafe, the U.S. must station troops for protection, which has cost the U.S. trillions of dollars. These expenditures have contributed significantly to the current $36 trillion debt. Nowadays, if countries want to be protected by the U.S., they must pay fees. If not, the U.S. will withdraw its troops, including from NATO.
In the past, the U.S. could sell bonds to spend money, but now U.S. bonds are very hard to sell and countries are unwilling to lend to the U.S. anymore. Therefore, Trump has to cut costs abroad. This means that other countries must spend more to maintain the U.S. presence. Additionally, Trump has raised global tariffs, requiring countries that sell goods to the U.S. to share a portion of their profits, seeing this as a way to increase income for the U.S. As the U.S. income rises and spending decreases, the opposite happens for other countries where income decreases and spending increases. The U.S. strategy is to make other countries poorer while money flows into the U.S. treasury.
As an investor, when you see the economies of Europe or Japan weakening, where will you invest? Your only choice is the U.S.
2. Merging more countries into the U.S.
During Biden's administration, the U.S. government spent uncontrollably, leading to the current U.S. treasury having only $700 billion left when Trump took office. Every month, the U.S. spends about $200 billion more than it earns, which means that in less than half a year, the remaining money will be depleted. Trump has collaborated with Elon Musk to establish a department aimed at cutting spending while increasing revenue through measures such as raising taxes. But even if successful, it would only extend the treasury's depletion by a few months. However, Trump needs to be president for another 04 years, so these measures are not long-term enough. The only solution is to ask the Fed to expand its balance sheet and print more money to buy more U.S. government bonds. However, printing money will lead to the depreciation of the dollar, making investors even more hesitant to buy government bonds. So, what should Trump do? Trump needs to increase assets and reduce bad debt so that people trust in the stability of the U.S. Then, even if the U.S. prints more money, there will still be people willing to use dollars to buy U.S. bonds. Trump’s approach is to acquire and merge the assets of other countries into the U.S.
Here I want to talk about Canada. Canada has a lot of resources, and the U.S. can exploit and annex them. Until now, Canada has always been like a subsidiary of the U.S. Trump’s desire to make Canada the 51st state of the U.S. means that the parent company wants to merge with the subsidiary. At this time, the finances of both will be consolidated.
Greenland is similar; it’s not about buying but merging entirely. It possesses a lot of resources like gold, iron ore, oil, and natural gas worth trillions of dollars. However, Greenland is very cold, so these resources cannot be exploited for now. With global warming, just a few more years when the ice melts, the U.S. can exploit them. This is equivalent to the U.S. making long-term savings. Greenland is practically within the U.S.'s reach; it belongs to Denmark, but Denmark allows Greenland to have the right to decide whether to sell or not. The only remaining issue is the price. If the issue cannot be resolved, just a police force is needed without military involvement because the population here is only 50,000. If Greenland belongs to the U.S., all of North America will become a solid block. The U.S. will get closer to Europe, and when these two richest regions in the world merge, will the U.S. still worry about repaying that $36 trillion debt?
Furthermore, Trump plans to turn the Gulf of Mexico into the Gulf of America, contributing to 1/7 of oil production and half of the oil refineries in the U.S. The special thing is that the oil fields here are interconnected. In addition, Trump is also targeting the Panama Canal, which is used to transport oil extracted from the Gulf of Mexico to the world. If the U.S. controls both the extraction and the exit routes, then all the assets here would belong to the U.S.
When controlling oil reserves, the U.S. can lower oil prices, thus making it difficult for Russia to end the war. To wage a war, you need money, and Russia's source of revenue is oil.
This is Trump’s global strategy.
3. Increasing welfare helps real estate prices rise significantly
Trump plans to fully privatize two American real estate companies, Fannie Mae and Freddie Mac. What does this mean?
Previously, these two companies were government-backed; now, if they are privatized, the profits earned will belong to them. If you are an American wanting to buy a house but don’t have money, you will have to borrow from the bank. The bank will assess your repayment ability and collateral, and if you have no collateral, you may not be able to borrow. This means that banks only deal with the rich, not the poor. So what should be done?
At this moment, the U.S. government tells you that it’s okay even if you have no money or don’t qualify for a loan, the bank will still lend you money. Because the government will require the two companies to transfer money to the bank and the bank will continue to lend you. Thanks to this, you can borrow money to buy a house. This is similar to borrowing tuition but is safer because if you cannot repay, the bank can reclaim your house. Thus, when everyone can buy a house, house prices will rise. At that point, the people can buy houses, the banks earn interest, and the government gains more votes. Everyone benefits as long as house prices continue to rise.
After a long period of raising interest rates, the number of people borrowing money to buy commercial real estate who cannot repay is now equivalent to the 2008 real estate crisis. If Trump truly privatizes the two companies Fannie Mae and Freddie Mac, this means that the U.S. government will no longer guarantee you. If you cannot repay the loan, it will not involve the government, and the government will not pump money into the banks. This lack of guarantee will help the government save on spending and also reduce bad debt while the people still benefit from good welfare policies.
4. The prospect of collapse and opportunities for investors
In summary, if we combine the two factors of increasing assets and reducing debt, we can predict a scenario. If the real estate market in the U.S. collapses and banks also go bankrupt, this could lead to the collapse of the stock market. At that time, investment money flowing into stocks will shift to treasury bonds. If Trump successfully merges other companies, he could create a situation where the value of U.S. treasury bonds recovers. At that point, Trump will have the opportunity to borrow more at low interest rates, expand the scale of money printing, and use the newly printed money to lend to capitalists like Buffett to buy cheap assets.
The year 2008 happened like that, and now it is almost certain that the Fed will continue to expand its balance sheet and print more money because otherwise, the U.S. will not have money to spend. To date, stock values have risen high; is Buffett holding the largest cash reserve in history just to buy up the high-priced stocks to continue pushing prices up? That doesn’t make sense.
Thank you for spending a lot of time reading my analysis above. I wish you always make wise decisions.
