Everyone knows that global indebtedness has become achieving astronomical figures, especially for industrial countries, led by the United States, whose indebtedness has become more than 38 trillion dollars, and the main reason, I think, which deepened that indebtedness is those conflicts that arose between them, especially after the Corona pandemic, as the world collided with the Russian-Ukrainian war, which magnified the conflict over energy sources of oil and gas, which are the main nerve of the industry and Russia leading to inflation in Europe and increasing prices for citizens and the closure of many factories in them as a result of obtaining oil and gas from other countries at double prices, and therefore high indebtedness, and the impact of oil price fever then extended to the United States and reflected on its economy and the livelihood of the US citizen, which deepened inflation .
اضافة اعلان
As a result of the sanctions on Russia by the West, the export of oil and gas from Russia has shifted to Asian countries such as India and China; China and India have become importing the vast majority of Russian oil, which is produced by about 9 million barrels per day at preferential prices as a result of Western sanctions on Russia.
What does it mean?The economic sanctions on Russia coincided with the imposition of tariffs on the world, especially on China and India, those two countries competing for US industry, which Trump wants to slow down and bring global investments and create infrastructure in the United States to bring various industries;but the decision came the opposite of what he wanted, China achieved a trade surplus of a trillion dollars in eleven months, so what happened is that Trump's decisions came in favor of its rival China as follows :
First: China obtained oil and gas prices from Russia at prices lower than the world market, which reduced the cost of production on the Chinese product and its goods became more attractive to the countries of the world.
Secondly, as a result of the lifting of tariffs, trade exchanges between China and the United States have decreased and shifted to the countries of the world this year .
Third, China has opened trade markets with new countries.
Fourth: China has become producing goods to the countries of the world with the lowest quality due to poor quality standards among importing countries, especially Asian and African, which means doubling Chinese production and profits.
The other question is: How will the United States succeed now in manufacturing that will compete with China and India? As Trump wanted it in light of the US focus on the artificial intelligence bubble, which exhausted US investments by pumping in that technology, and which the US citizen has not seen any improvement in his living.
In conclusion, what the United States is heading towards does not bode well for its economic future, the measures taken by Trump from imposing economic sanctions and imposing customs duties have negatively reflected on its economy, and we will soon see major complications in the US economy that may overwhelm the financial markets, especially with the increase in geopolitical tensions around the world, in which the United States is a party to all of them.
Expert, strategic and economic analyst.
