What was feared has happened and is happening. Trump has started a global trade war around the world. The Americans have also elected a person as their president who will bankrupt America and the whole world.
Trump’s main problem is that he considers himself to be the wisest and whatever decision he makes, he sticks to it. This characteristic is fine in his personal capacity, it is even a virtue, but the affairs of the country cannot run like this. Trump has become a millionaire from zero 3 times in his personal life. This is also a virtue and if this ability is present in a leader, it is a flaw because it takes generations for a country or nation to stand on its feet again after going from zero. The slope on which Trump has started dragging America through the tariff war will have an impact not only on America but on the whole world.
Trump has started a tariff war with countries around the world and in response, powerful countries have also imposed tariffs on America. With this, financial markets around the world have started to fall. Khaksar is currently in Dubai and after talking to economists here, I somehow feel something similar to the 2008 financial crisis is happening. Something is happening that will shake up the financial system around the world and change global finance or geo-economics. Will this change be good? Yes, no!
First of all, it is necessary to understand why Trump has started a tariff war? The very simple answer is that he is trying to convince the American simpletons that he is trying to protect the American economy from external threats. While in reality, to save his seat in the mid-term elections, he has opened such a big front that even his elders will not be able to close it now. After this move, the American monopoly will start to end worldwide and the world will see a new global contractor in the next 5 years. This policy of Trump is also a clear sign of his being a good businessman and a failed leader because he has seen economic history and his business understanding as a businessman, but if he had seen all this as a leader, he would never have taken this stupid step.
I am sure that American economists also understand what the economists are understanding. They also know what the consequences of Trump’s actions can be, which is why Warren Buffett was the first to sell his stocks in the market and convert them into dollars. But Trump, interpreting his current victory as divine help, has concluded from himself that he is free to do anything and the global tragedy is that the world is tied to dollars and no other financial system is an alternative to it or its possibilities are visible. Now the world is not a fictional novel that everything can change in 250 pages, so at the moment it is clear that the world is standing on the threshold of another global recession.
Trump’s tariff war will now affect economies around the world and it is obvious that Trump will not back down from it. As a result, America will also suffer, for which Trump will place all the blame on China and Europe. In his midterm elections in 2026, he will have this weapon in his hand: I am not a contractor for the world economy, I have come to fix the American economy and I increased tariffs around the world so that local people can substitute American products.The biggest losers in all this spectacle are the stock markets and real estate. Financial markets around the world do not recover so quickly from such shocks. If this trend continues, then perhaps the world will see a crisis like 2008 again when Lehman Brothers declared its default and with it the mortgage market defaulted and at the same time the banks and financial systems around the world started to collapse. At that time, Obama was there, there is also a theory that those who have the financial system around the world in their hands made this move to remind Obama of his times. Well, it took 3 to 5 years for markets around the world to recover from this shock. Nothing can be definitively said about what happens now.
It is also important to note that the biggest problem with asset depreciation is margin calls and liquidity. Private equity and hedge funds in the US are already facing these problems. At present, Bitcoin, crude oil are facing huge losses and even bonds considered risk-free are under pressure. This situation is creating a credit crunch like 2008 and if the situation is not controlled in any way, a credit crisis will arise.
In the whole world, only Dubai seems to be better prepared to deal with this whole situation. The chances of credit default are the lowest in Dubai and the best and most organized mechanism for debt payment is also available, meaning the Dubai economy seems to be better prepared to deal with any situation and it has the arrangement to pay off the loans it has taken. Stable interest rates in Dubai will also be helpful in this regard. It seems that Dubai had made a policy by understanding everything late last year and now everything is streamlined, so its impact on Dubai’s real estate market, especially the ready property market, will be very minimal. Moreover, Dubai has learned a lot from the 2008 financial crisis and has expanded its scope instead of relying on one or two. So if one sector is hit, the remaining sectors will come together to save it. So it seems that Dubai will get out of Trump’s trade war at this time.
In this whole situation, there are possibilities that Dubai and the entire Gulf may distance themselves from the American economy in the future. Although the possibilities of this are limited, they exist. A country that has caused the world to face a global crisis again in less than two decades and the current global crisis is due to the incompetence and wrong decisions of the leadership, cannot be a good economic partner in any way.
With all this, an important point that is being discussed in important economic circles is whether all this is happening suddenly? The turmoil in global markets and the overnight outflow of trillions of dollars from the market, the collapse of global financial institutions and other factors that accompany it. No! These are neither coincidences nor do they seem real. It seems that the stage has been set. On the other hand, the element of fear that has been added to the global business news, due to which there are too many sellers and too few buyers, is also artificial.
Now just look at who are the buyers? Warren Buffett liquidated his shares a few months ago and many financial institutions have seen him do the same. Warren has liquidated shares worth about 134 billion and has built up a cash pile of 334 billion. What does this mean that Buffett is getting ready to re-enter the market after some time. Now on one hand, the price of oil was decreasing and on the other hand, the price of gold was continuously increasing. It seemed as if mass panic had been artificially spread so that more and more institutions would exit the market and the prices of important shares would start falling. This has already started.
Now if big funds start buying shares again at cheap prices after some time, understand that all this was artificial and a game was played under the guise of America’s tariff war. There are strong possibilities of this. Who are the ones doing this? Those who control the global financial system. Those who control interest rates. Those who sponsor wars and global pandemics, those who own large financial institutions and those who also own the media. Their method of operation is unique. All of them work together silently and when the world is taking emotional decisions, they are cashing them in. Just look at what BlackRock and Vanguard are doing. Is the world entering a new digital financial system globally after all this? There are strong possibilities of this too.
What should be done in such a situation? There is an English saying that don’t buy fear. Act wisely instead of emotionally. There is no need to panic and follow the crowd. If you are in the share market, then definitely buy in dumping. On the other hand, keep an eye on tokenized assets, undervalued blue chips and precious metals prices. Now is the digital era, everyone’s performance charts are available online. Just do this, don’t make a decision out of fear.