Macro-Traders-Strategies

What has the US got themselves into?

Long
FX:EURUSD   Euro / U.S. Dollar
Fundamentally, the EURO should be experiencing a decline to reach new 52-week lows, given that its fair value, based on growth indicators, should be approximately at 1.02. However, the ongoing conflict in the Middle East, Ukraine and far east and the subsequent financial support provided by the United States have put the US at risk of a potential credit default.

For the first time in perhaps 5 to 6 decades, the United States is no longer seen as a secure refuge. Institutions are increasingly concerned about the country's future economic growth, as its political landscape appears chaotic. Notably, the absence of a House Speaker has exacerbated the situation, and President Biden's communication, both domestically and internationally, is fraught with misinformation. For instance, the Defense Department contradicts the President's stance on assigning blame for a recent hospital explosion. While Biden points fingers at 'the other team,' his own officials are holding his team responsible. This raises questions about the current state of affairs.

Donald Trump now outpaces President Biden across various domains, ranging from the economy to foreign policy. With the next election just under 12 months away, we find ourselves deeply embroiled in an information war. This is no longer a battle of "us versus them" or "good versus evil"; it has evolved into a struggle for control over algorithms and artificial intelligence.

This week, President Biden intends to request an additional $100 billion in funding for a foreign nation at a time when a significant portion of Americans are struggling to make ends meet. This situation necessitates a deeper inquiry into whom President Biden truly represents. Similar questions arise regarding the motivations of figures like 'never won a leadership contest' Rishi Sunak. In such instances, it is not uncommon for populist parties to gain ground at the grassroots level.

The Fed have been put in a hard place, on one hand it cannot continue to raise indefinitely, but at the same time, inflation data continues to surprise to the upside? Do the fed help fund Biden's foreign policy or go against the government?

Financial speculators are likely pondering over this question and who exactly is overseeing the economy and whether we can sustain a 34 trillion-dollar debt at over 5% interest rate.

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