Trump is weakening the United States - Natixis

Analysts at Natixis argued that Trump is weakening the United States.

Key Quotes:

Trump is weakening the United States given:

 - The choice of an expansionary fiscal policy at a needless time; The expansionary fiscal policy being implemented at full employment (risking deteriorations in foreign trade and in the terms of trade), the primary effect of which is to drive up share prices.

- The support for low-end industries; The support being given to low-end industries, which may reduce the sophistication of the US economy.

- The protectionism, which is primarily driving up import prices; Protectionism, if the price-sensitivity of US imports in volume terms is low, as its only effect would then be to drive up import prices.

- The contribution to the increase in uncertainty, when the United States needs lenders;

- The refusal to form an alliance with the European Union to gain more influence with China;

- The rejection of immigration, which provides the United States with the skilled workers it needs.