Trump’s Dead Economy Jibe, U.S. Treasury Bonds Face Modi’s Bad Vibes

Donald Trump’s ‘dead economy’ slur upon India/Russia has irked India that officially eschewed interest to purchase the fifth-generation F35 fighter jets. Short Post reported earlier on India’s reluctance to buy the American planes. The U.S. president Trump’s disparaging India talks will adversely impact the U.S. instead. Well-placed sources said, “India’s trade relations with the USA also included wide-ranging exposure to American bond markets for relationship building as indirectly sought by the USA. Trump’s undiplomatic language dissipated this informal American pressure and will evaporate Indian government/private sector spending on American treasury bonds hereon.” Over five years, demand for the U.S. government bonds declined to historically lowest levels (-17%). With foreign governments emulating India’s scaling down of financial spreads in the U.S. bonds and the American Federal Reserve also scaling down its own exposure over rising interest rates, the economic outlook for the Trump government, which raises $2 trillion annually to service its fiscal deficit, appears bleak. India partnered the U.S. economically to encourage her emphasis on exports to the USA. Trump’s belligerent stance repeatedly failed to get India to buckle down over higher tariffs pressures, again put off till August 8, with U.S. dairy and agricultural products imposition upon Indian markets staved off effectively. While concerns linger regarding its pharma and auto sectors India doubled down on indigenous manufacturing that coincidentally is coming of age today. Indian PM Narendra Modi’s ‘Make in India’ exhortation to Gen ‘Z’ to manufacture semiconductor chips witnessed 20 varieties already past the testing phase, set for launch in six months. Similarly, 48,000 indigenously fabricated Close Quarter Battle) carbine assault rifles developed in collaboration between DRDO and Bharat Forge, set to reach 70,000 units this year, will ensure India’s modern arms foray/exports, achieves strategic advantage alongside Indian drones developed on mass scale.