A noteworthy piece of news over the weekend is that Trump has confirmed the nomination of 'Soros' disciple' and well-known hedge fund manager Scott Bessent as the U.S. Secretary of the Treasury.
Soros is world-famous for speculating against the pound, gaining fame overnight and making 1 billion dollars, Bessent also played a significant role in this battle.
Bessent's important governing philosophy includes supporting a gradual significant increase in tariffs, believing that the yen is severely undervalued and needs to appreciate by at least 40%, and suggesting that Trump pursue the '3-3-3 policy' - reducing the budget deficit to 3% of GDP by 2028, stimulating GDP growth by 3% through deregulation, and increasing U.S. oil production by 3 million barrels per day.
Among the above policies, only increasing U.S. oil production is relatively friendly to China, as it can lower international oil prices and reduce China's oil import expenses.
I have mentioned before that whether it is Trump or the Democrats, whoever comes to power will not be very friendly towards us and will treat China as a strategic-level opponent to be restricted.
Overall, Trump's core cabinet members have a relatively tough attitude towards China.
In fact, there is no need to worry that Trump's policy towards China will have a particularly huge impact; in the short term, Trump's most pressing task is to deal with a series of contradictions within the United States.
Trump's first step after taking office is to deport illegal immigrants on a large scale; some worry this will lead to a rebound in U.S. inflation; but that's fine, the second step is to lay off a large number of federal employees and cut fiscal spending, which will thoroughly bring down inflation. Completing these two steps will take at least a year or two to resolve the current stubborn issues of high inflation, false bubbles, and prominent security problems in the U.S., after which actions will be directed outward.
Trump's purge is about to begin; the cabinet and Secretary of Defense appointed by Trump are aimed at purging the Joint Chiefs of Staff; the Attorney General is focused on purging anti-Trump judges and prosecutors; Musk is focused on purging bloated expenditures.
These cabinet members appointed by Trump are equally tough both internally and externally.
Trump's biggest enemy is actually the deep state within the United States.
Many cabinet members appointed during the first term were pushed on him by the establishment, and the cooperation was not pleasant; many of them turned against him after being replaced.
The cabinet members appointed in this term are all tried-and-true loyal warriors, who will carry out a major purge in their respective departments, cutting jobs where necessary and replacing people with their own.
Most people do not believe that Trump can control inflation.
Argentina, which has cut jobs and expenses, has successfully reduced inflation from 270% to 40%, and it is expected to drop to 10% next year.
How can the mere 3% inflation in the U.S. not be cut down?
However, cutting spending has short-term side effects; Argentina's poverty rate has further increased, and we have also cut spending in the past year and a half, leading to economic stagnation and deflation.
With the U.S. cutting spending, the economy will inevitably decline rapidly, and there will be a year and a half of recession just like in China. Then the effects of cutting spending and relaxing regulations will show, leading to economic recovery, just in time for the mid-term elections.