Friday, September 2, 2016

SG-US and election in United states

"Election in United states on 8th of November 2016 (Tuesday) will not be a catastrophe nor a think that will inmediately increase the price of bread": my opinion. "It will not effecting us inmediately in normal life change the way we already see and will see the American economy in medium term and therefore change the life of real people in medium term too." The most dangerous about this is a time lag between cause and effect. It is like an invasion of Russian soldiers to Crimea. No effect on Russians inmediately, but now after 2 years we sense normal Russian people are suffering. And I am brave enough to say it is 50% caused by the invasion. (Suffering I define as a difference between a life style before and after invasion, on behalf my epirical research in Russia and analysing Russian data).

My prediction, in this moment is following:

It will be rather good for US and world if Trump wins in long term(4-..). I predict his win.

In short term (0-0.5 year) it is without dramatic influence. In medium term (0.5-4 years)

I expect:
Short term:
Trump will analyse the problems with his business thinking. Will try to be on as many meetings as possible and listen and understand. He will ask a few people to leave within his circle inmediately. Especially people appear to be dummy on a first sight. People not being able to asnwer a simple question. And of course people he can allow to fire. That will, to certain point, be a suprise. But not a big game changer. He will also seek for a people on his side. I am afraid his team is not too strong now.

Medium term:
It will be seen the change of the game in US. There is a risk of Dallas 1960's. Chinese economy in fall, USD controlling exchange rate and keeping it low. Unemployment rate up, especially from former government employees. Normal business people maybe poorer in comparison with the world, but with more jobs. Stronger export of less sophisticated services/goods. Stronger police control within US. More volatility on market, less spending and therefore slowing internetional economy.

Long term:
Allies more focusing on covering their costs on the protection/army. Russia knowing his borders and getting out of Ukraine, but staying in Crimea. China loosing position in the region and globally.   US stronger. Euro to US attacking 1,2 with additional pressure on south nations like Greece.


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