Macroeconomic Interpretation, Giving You More Confidence
1. Four countries in the Group of Seven (G7) - France, Germany, Canada, and possibly soon-to-be-rejoining the UK - are experiencing government turnover due to budget crises. It is expected that one of these countries will face a bond auction failure by 2025. By the end of 2025, most G7 countries will be governed by conservative administrations.
2. Trump will establish a new global monetary framework similar to the Plaza Accord of 1985. This framework will promote a gradual and significant depreciation of the dollar, facilitating the return of manufacturing to the United States while directing liquidity towards U.S. markets and high-risk asset markets like cryptocurrencies.
(Interpretation: It is an undeniable fact that the Trump era will actively embrace cryptocurrencies; the core key to accelerating the return of manufacturing lies in lowering interest rates to reduce corporate financing costs. Therefore, the Federal Reserve's interest rate cut trajectory will no longer be under Powell's control but more inclined towards Trump, hence the main tone of interest rate cuts will continue to increase next year, benefiting the cryptocurrency market.)
3. The inflation rate is expected to be between 2.5% and 3.3%. In response to a weak job market, the Federal Reserve will significantly lower interest rates.
Interpretation: This aligns with the second macroeconomic point, consistent with Trump's policies.
Major global armed conflicts are expected to conclude in the first half of 2025, ushering in an optimistic era of peace and security.
Interpretation: The world is entering a period of peace, and Trump is a peace enthusiast, which will lead to lower gold prices flowing into the cryptocurrency market!