Ramesh Damani, a member of the Bombay Stock Exchange, compared the actions of former U.S. President Donald Trump to those of Lyndon Johnson during the Vietnam War, suggesting that Trump might soon declare victory and reverse the policies he introduced. Damani believes Trump will claim success by stating that his policies have achieved their goals, such as bringing negotiating parties to the table and demonstrating America’s power, even if he does not acknowledge any losses. He predicts Trump will announce victory, leading the world to revert to previous conditions.
Damani raised concerns about the U.S. administration’s tariff announcements, highlighting views from traditional economists who see these moves as contradicting classic economic theory. This perspective suggests that such actions could rekindle inflation, promote de-globalization, and potentially result in significant contraction of the U.S. economy. Damani reminisced about the Indian Emergency in 1975, drawing parallels with Trump’s current policies, which he perceives as dismantling the established international order within a short span.
Regarding global market reactions, Damani noted that while stock markets have experienced downturns, particularly in Asian countries like India and China where tariffs have been imposed, they are still performing well at present. He argued that the markets are wisely adapting, foreseeing a decoupling from the U.S. as new global alliances form. Damani emphasized that although the U.S. remains an economic superpower, it must respect other strong economies’ opinions and adjust to a rapidly changing global landscape.
Damani expressed concern over the U.S.’s unilateral actions against countries such as Mexico, Canada, and others, questioning whether America remains a desirable destination for education given the current political climate. He cited the U.S.’s diminished influence, illustrated by inadequate responses to international aid situations, like the earthquake in Myanmar.
He acknowledged the possibility of a downturn in the U.S. economy affecting the world due to its large size and significant share of global debt. However, he suggested financial markets are already adjusting to this scenario. Drawing on historical references, Damani proposed that, similar to past situations, Trump might declare victory and reverse his policies, though the world is likely to have moved on by then.
Damani suggested that despite current hardships, the U.S. might eventually soften its stance, offering olive branches as it realizes overreach. He believes that while some reversals are probable, the world is progressing beyond outdated approaches and will continue to thrive, pursuing better standards of living beyond the American example.