Tuesday 3 November 2020

A Conversation On Trump


The US election will be huge for its impact on global recovery over the next few years. Being the world's only legitimate superpower and still no. 1 economy, many eyes are casting worried glances over who the new president would be. In my limited anecdotal exchanges, I gather Donald Trump (DT) has the backing to win it.

In one particular event, I heard the merits of DT and reasons for support. He is as loud mouthed as one could get, wearing his heart on sleeve through repeated proclamations of his determination to "Make America Great Again". By being openly hostile to China, he's actually forewarning the Chinese on his expected actions and leaving no room for negotiation due to the US superiority. In DT's mind, democracy is the only way forward for a conservative and communist China. If this happens, China goes into disarray and gets set back by a few decades. Hence, everyone except Xi looks forward to the direct clash that DT brings. But China is also secretly glad because DT reveals so much and fights internally, this allows defensive plans to be put in place as counter jabs. Another disadvantage China has is its aging population. Unlike the US who is an immigrant nation and still attractive to many potential migrants, China does not court foreign talent heavily. Over time, the economic realities would catch up if current trends remain. The US therefore needs to bide its time and in DT, it can exert a few years of pressure to create chaos for China. Domestically, while the Covid situation is not handled well, it's also a fact that mortality rates are not alarming and people seem to accept that by continuing life as normal. The greater issue is to get back on jobs and spurring economic growth which DT is seen as a stronger proponent.

So if DT really gets re-elected, expect fireworks and more roller coaster moments. I'll be looking for signs of flight from China eg funds outflow, increased emigration, business relocation. If that happens, DT would have considered his job well done. Nevertheless, even if Joe Biden wins, let's see how much of the above scenarios turn out.

Tip: Masumi Four Color Flagship Sake

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