The Trump administration has unleashed multiple shock waves across the world, as President Trump seeks to fulfill his campaign promises of Make-America-Great-Again. It has truly muddied the water, in terms of the near-term realization of prophecies of Revelation.
That aside, I was just pondering President Trump’s effort to bring back manufacturing to the United States. Given the cost difference between making things abroad vs making them in America, not only will tariffs need to be maintained in the long run, but also the production input costs in America must also drastically fall. President Trump is addressing this by seeking to ramp up energy production in America — energy prices must fall to around the same level as that in China. The reopening of coal mines in the America is one step in that direction. Even then, the cost of labor is another very large differential. One way to address that issue is for the US dollar to fall in value verses offshore production sites. The financial press makes indirect references to this. Under President Reagan, the Plaza Accord was reached, which pushed down the exchange rate of the US dollar. There is speculation that President Trump is seeking to replicate that with a “Mar-a-Largo accord”. Should the Trump administration succeed in their efforts to ramp up energy production in the States, and somehow strong-arm America’s trading partners to accept a large devaluation of the US dollar, then odds of successfully bringing back manufacturing to America will increase significantly — that is a lot of ifs.
(Again, this is not related to the prophecies of Revelation.)