Joe Biden, proclaimed winner of the presidential race, will seriously change the coming to power economic policies USA. If for the Republican Donald Trump the dollar was the "king", then under the Democrats, the American currency will continue to devalue. What could be the reason for this?
The change in the political course of the "hegemon" will have very ambiguous consequences. On the one hand, Washington under Biden will end violent trade wars with China and its European allies. The United States is likely to begin rebuilding Trump's liquidated Transatlantic and Trans-Pacific Partnerships in order to provide controlled competition between them in the framework of the "globalist" project. The White House may even return to the former format of the "nuclear deal" with Iran. On the other hand, renewal of the world order will have to pay a price, and everyone will have to pay.
At first, Democrats, unlike Republicans, are not advocates of tax cuts in the United States. On the contrary, taxes under Joe Biden can only go up. The increase in the tax press should discourage many investors from investing in US currencies and assets. This will contribute to further dollar devaluation.
SecondlyThe Democratic Party of the United States will have to thank its loyal voters by increasing their social benefits. To do this, it will be necessary to place additional government bonds and print many, many more dollars, which will only intensify the devaluation of the “American”.
Thirdly, unlike Donald Trump, Biden's team intends to fight the coronavirus pandemic even harder. In practice, this will result in new restrictive measures that will delay the recovery of the US economy. But the collective "BigPharma" will be able to make good money on the sale of vaccines to the intimidated and terrorized population by the media. Its solvency will decrease, despite all the state support measures, while the tax burden will grow.
Among other things, the US relations with Russia will objectively worsen. If Republican Trump was not particularly interested in our country because of its small contribution to world GDP, then Democrats care about everything that happens on the globe. Given the difficult relationship between the Kremlin and the Democratic Party, there are great risks of new sanctions, which will turn out to be incomparably tougher than the previous ones. It should be remembered that Biden, proclaimed the winner of the presidential race, can "annoy" Russia by lifting sanctions on Tehran and reviving the "nuclear deal". After that, Iranian oil will pour into the market, which will prevent the recovery of world quotations. It may seem that the United States is in such a way for itself, but it should be borne in mind that Joe Biden has openly proclaimed himself a supporter of renewable energy and set a goal to fight climate change on the planet:
The oil industry significantly pollutes [soil, water and atmosphere] and ... must be replaced over time by renewable energy sources. And I would stop providing federal subsidies to the oil industry.
It is clear that the failure will not happen immediately. The Democrat promised "over the years" to complete the US transition from oil to alternative energy sources. Taking into account similar plans in the European Union, nothing good will end for the Russian ruble with its dependence of the federal budget on raw materials exports.