Modi vibes well with Trump. But India may not be ready for a second Trump term
5 months, 3 weeks ago

Modi vibes well with Trump. But India may not be ready for a second Trump term

Live Mint  

Having survived an assassination attempt, and shown defiance and fighting spirit while under attack, former US president Donald Trump has improved his chances of beating a frail-looking Joe Biden, who struggles to convince American voters that he retains the mental acuity to continue in office for another term. Should Trump emerge as the 47th President of the US, as is highly likely, global geopolitical and geoeconomic conditions would swiftly change, given his economic policy plan announcements. The underlying message is clear: a Trump presidency would see the US Fed as an agency that submits to the Executive’s will or gets removed. The net result of Trump’s economic choices would be to dampen US growth, and thereby US import demand, depressing global exports, and to raise the cost of capital, depressing direct investment flows to the developing world and inducing a flight of funds deployed in emerging markets back to the US. While the isolationist streak would lead American foreign policy under Trump to give China greater degrees of freedom in the South China Sea, that has the potential for Chinese conflict with America’s treaty allies like the Philippines, drawing the US itself into the conflict.

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