Election Fears and Trade War Tensions | Weekly Business Briefs w/ Martin Perdomo

Is replacing the peso with the US dollar the silver bullet Argentina needs to conquer hyperinflation? Join us as we dive deep into José Luis Espert's controversial dollarization proposal that's making waves across Argentina's economic landscape. We'll explore the potential benefits for a younger generation desperate for stability, while also weighing the critics' concerns about the looming loss of monetary sovereignty. This heated debate offers a fascinating glimpse into the challenges and hopes of a nation on the brink.

Switching gears, we shift our focus to the global stage and examine China's growing anxiety over the US election, particularly the prospect of another Trump presidency. Discover how tariffs from Trump's first term rattled Chinese industries and why his latest proposal to tax imports from countries with unfair trade practices is stirring up fresh debates. Will such measures protect American jobs, or will they ignite new trade wars? Get the inside scoop on the geopolitical tensions and economic strategies shaping the future.

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Transcript

Speaker 0: 0:28

Today's June 5th 2024, and here are the top three headlines in this week's Weekly Business Brief. Millet's dollarization plan sends shockwaves through Argentina's economy. In Argentina, the peso's value is plummeting, causing widespread concern amongst its citizens, particularly the younger demographics. Economist and political figure, josé Luis Espert, known as Millet, is advocating for a radical solution replacing the peso with the US dollar. This concept, known as dollarization, aims to stabilize Argentina's volatile economy and restore confidence in its financial system. Millet argues that trying the economy's. Millet argues that tying the country's currency to the dollar would mitigate the hyperinflation and economic instability that Argentina has historically grappled with. However, dollarization isn't without its skeptics. Critics fear that adopting the US dollar could limit Argentina's autonomy, potentially hampering the government's ability to implement monetary policies. Despite the debate, the idea of dollarization is gaining traction, particularly amongst young Argentinians seeking relief from the peso's devaluation. As the currency value continues to decline, the appeal of more stable alternatives like the US dollar is becoming increasingly appealing to many in Argentina.

Speaker 0: 2:04

Next up looks like China is getting afraid if and when Trump wins the re-election. China's feeling the heat as the US election approaches. They're getting worried about the possibility of Trump winning another term. Why? Well, during his presidency, trump hit China with tariffs, essentially taxes on goods they export to the US, and it made things tough for Chinese companies and messed with their economy. And it made things tough for Chinese companies and messed with their economy. Now, as the election draws near, china's crossing its fingers for a different outcome. They're hoping for someone less tough on trade, like, let's say, biden. See, trump's tariffs hurt China's economy and they don't want more of that, and they don't want more of that. So if they're keeping, they're keeping a close eye on the election, hoping for a change that will be easier on their wallet. Well, on this, mr Biden, just recently, a few months ago, just increased tariffs on China, and I wonder why he did it right during the election year. Now he wants to get tough on China, but we'll have to see how this plays out. I personally think that someone that's tough on tariffs, especially with China, if China wants to play tough, we need a tough leader to stand up for us, the American people, and just push back right.

Speaker 0: 3:29

And in this week, on Trump's Watch. After last week's guilty verdict, trump now wants to tax the world. Well, not exactly the whole world, but he's proposing a new tax on imports from countries that don't play fair when it comes to trade. Basically what we were just talking about a moment ago. Basically, he's saying hey, if you're not treating us right in trade deals, we're going to slap a tax on your stuff. It's kind of like a punishment for countries that Trump thinks are taking advantage of the US.

Speaker 0: 4:02

Now this plan sounds pretty bold, but it's stirring up a lot of debate. Some folks think it's a smart move to protect American business and jobs. They're like, yeah, let's level the playing field. But others are worried it could backfire and start a trade war, making stuff more expensive for everyone. So while Trump's talking tough on trade, everyone's keeping a close eye on what this plan and what and how this plan lays out on the global stage.

Speaker 0: 4:34

Here's the thing. Let's just say your neighbor across the street or across the road or in the next town, right, you trade with him and you're doing business with him. And your neighbor says, hey, when I buy from you, you give me wholesale prices. So you give me wholesale prices so that then I can turn around and sell it to retail, to people in my town at for a profit. But when you buy from me, I'm not going to sell you the goods at wholesale prices, I'm going to sell you the goods at retail prices. That is exactly what Trump is talking about putting these tariffs to level the playing field.

Speaker 0: 5:10

We're going to treat you the same way you treat us, and I think a strong leader if you wouldn't allow that, would you Right? You probably not, but as a strong leader in your home, of your country, of your company, of your business, you would do the same, right? If you're trading with someone and someone's treating you fairly, then you treat them fairly. But if you're trading with someone and they's treating you fairly, then you treat them fairly. But if you're trading with someone and they're treating you unfairly they only want it to be a one-way street to benefit their side then you make it level and you say, hey, this is how we're going to do. You want wholesale? Then you're going to have to give me wholesale. If you don't give me wholesale prices, then I'm going to treat you the same way you're treating me. I think that's fair and this has been your weekly business brief. I'll see you guys next week. Peace.