Even human being will return to the Moon next week, even Mars exploration competition is re-starting, the concern is not so much. For among all competitors, no country can give actual threat to US, no one can surpass US to land on the Moon and Mars. Domestically, people still worry more on the ICE enforcement, interest rate and inflation. Internationally, it is the weak dollar policy of Mar-a-Lago Accord (page 7).
Trump is using weak dollar policy to improve the trade deficit of US. It’s the simplest method to make US products more attractive and thus can sell more. But the greatest setback is importing price will also be higher when they need raw materials. It is a basic theory in Principle of Economics in freshman year of all universities.
Why it attracts attention so much? Because weak dollar policy led to record high in gold, silver and copper. Not only these, all 3 major indexes are near record high and S&P just touched 7000 points. Why people link up the Mar-a-Lago Accord with Plaza Accord in 1985? Again, because of Japanese Yen!
Sanae Taikachi, the Iron Lady of Japan called for a snap election. She is a successor of Shinzo Abe who has the longest term of prime minister in Japan and in enhance of Abenomics. She supports heavy government investment in critical strategic sectors with emphasis on “bold crisis management and growth investment”, which will involve large-scale fiscal spending and the development of legal systems and new economic bonds. And is known as Sanaenomics.
In the Plaza Accord of 1985, it also made stock market broke record high but followed by great slump of 1987. So, what would happen 2 years later in 2028? We will have the space program of Mars and Moon; we will have Full Self Driving and humanoid robot. We will have the AI development which is quite different from last century. When S&P reaches 7000, is it the good news? Will it continue to go up or will have correction? We better put our eyes longer and wider on the space projects.