Demonetisation of Modi Ji and Trump’s Tariffs – Top people’s logic and Normal people’s suffering.

5^th April 2025

Demonetisation of Modi Ji and Trump’s Tariffs – Top people’s logic and Normal people’s suffering. 

Dear Investors,

Namaste! As a normal person we are thinking in a straight line. Our logic is common-sense logic. But the top guys have a Crooked Logic. Their thinking starts where our thinking stops. The same thing is happening with the TRUMP TARIFFS.

Let us see the common logic: -

With the hike of TARIFFS – the things USA is importing will become costlier. Inflation in the USA will move up. As such people are suffering from job losses ( due to various DOGE measures) and TRUMP wants to make them suffer more by making them pay higher prices for the goods they use. They will use less of the goods. That will lead to lower demand and recessionary conditions. This can further escalate to RECESSION in the USA. 

This is common-sense logic. 

Now, the CROOKED LOGIC starts.

What does TRUMP think? 

TRUMP has come to the power to MAKE AMERICA GREAT AGAIN. His intentions are to reduce the deficit of the USA as soon as possible. He wants to reduce the interest burden also. 

So, his logic starts now. 

Lower Interest Payment: - 

With the RECESSIONARY conditions – demand will go down. Low demand means low demand of dollars and low demand of loans. When demand for loans comes down – naturally interest rates will come down. When interest rates comes down – the loans become cheaper for the government. 

Just to share an example – 10 year bond yield has come down from 4.8% in January 2025 to 4.05% today. If you see the debt of 37 Trillion – he is saving USD 300 bln on the interest only!! 

The US has 9 Trillion of debt coming up for renewal. If the interest rates are already down – they can renew the same at the lower rates and decrease the expenses of the interest outgo. 

Supporting DOLLAR: - 

The US dollar is becoming powerless with the emergence of BRIC countries and country specific deals like India with Russia or India with Iran. India paid in WHEAT for the oil for IRAN and with RUSSIA we settled in Rupee. So, we passed the USD and did the international deals. 

With the increase in tariffs – the exporting countries may reduce the exchange rates. Say CHINA is the most affected country with the tariff hike. Currently the USD to YUAN rate is 7.27. Now if the CHINA wants to take care of the TARIFFS – CHINA may reduce the exchange rates to 10 Yuan per USD. 

With this, the USA can reduce the demand of DOLLARS by CHINA. 

Another way is with the demand going down in the USA – exports to the USA will go down. So, the debts of the USA will go down. This will add to the value of the USD in terms of exchange rates. 

In other words – the USD will strengthen without doing anything on the part of the TRUMP. 

War like situations in the other countries: - 

With the export to the USA going down due to hike in the Tariffs  – major USA exporters like CHINA will start dumping to the other countries. 

Say CHINA starts dumping in the INDIA. It means CHINA will have to sell at lower rates than India. This will affect the Indian economy big time. ( of course – India has decided to charge 12.5% anti-dumping duty for some kinds of steel products. The same way India can retaliate with other products). 

This means INDIA and CHINA both will suffer. China will not make good profit and Indian companies will not be able to SELL!! 

With other countries becoming weaker – USD will become more and more stronger. 

This may lead to actual war. These are all possibilities. What will happen in reality? Let us see. 

What happened at the time of Demonetisation in INDIA? 

The way the world and USA people are against TRUMP now – Indian politicians, big guys and normal people didn’t like the idea of demonetisation. 

But they couldn’t do anything legally against the MODI Ji. 

So, they simply used the BIG BANKS CONTACTS and converted their OLD notes to the NEW. Some bought the GOLD and SILVER. 

Tons of logic and videos came showing how the FAKE notes were coming to India from neighbouring countries. Big claims were made at that time that people having big black money will not deposit to the banks and RBI will have surplus in terms of paying lesser rupees in new currency notes compared to the ones in circulation in old currency notes at that time. But, RBI got back all the MONEY. So, there was no BLACK money as MODI JI was thinking.  The Indian economy suffered big time thanks to the whims and fancy of our leader. 

TOTAL IDEA of DEMONETISATION became SUPER FLOP. 

Have you seen Mother is helping back door to a daughter to get married to his lover when the father is against the marriage? We have seen that in real life an Hindi films tons of times. 

Today people are not able to do anything to TRUMP. But they will find ways to hike his tariff for sure. Smuggling to the USA will increase for sure. There are lobbies in the USA – selling goods without paying local state tax in cash to Mom and Pop stores. This will increase with these nonsense tariffs rates. 

China has retaliated with counter tariffs. Other countries will also join over a period of time. Either TRUMP will have to change or they will change the way the USA does business.  As such TRUMP period is not good as per his horoscope. 

What NEXT?

People choose the leader so that he can take care of their well-being and progress. If the leader fails – they don’t care however great he may be. They just find out their ways and change the leader when possible.  

Look at all the good works of MODI JI in the last 10 years. But he didn’t get the majority in the 2024 elections. In fact, BJP lost in AYODHYA!! They build the RAM MANDIR after 135 years – but the people were not impressed!! 

Today he is running a KHICHDI Sarkar with tons of focus on ANDHRA and BIHAR rather than on INDIA. 

The same will be seen for TRUMP in the coming time. So, focus on your goals and dreams. If you need help – you can approach us for our ACCURATE inputs for your coming times.

We will write about GOLD and SILVER in the next post. 

Wish you all a very happy weekend. 

Follow me on Twitter @hiteshmparikh or on Whatsapp - +91-9869425399.

 

Live With Passion…Invest With Passion.

 

Hitesh Parikh.