Core Viewpoint - The article discusses the significant shifts in global markets and U.S. economic policy, particularly focusing on the transition from Biden's economic strategies to Trump's proposed "Great Reset" aimed at addressing the issues left by the previous administration [2][9]. Group 1: Biden's Economic Cycle - The "Biden Cycle" involved massive fiscal stimulus post-pandemic, leading to high growth, high interest rates, and a booming stock market, which attracted foreign capital and supported a strong dollar [2][3]. - However, this cycle has two critical flaws: the risk of high debt and increasing wealth inequality, which could lead to a long-term depreciation of the dollar if the dual deficits exceed a certain threshold [3][6][8]. - The wealth disparity has worsened, with the top 10% benefiting from asset appreciation while the bottom 50% face rising costs of living, undermining the "American Dream" [7][8]. Group 2: Trump's Great Reset - Trump's approach, termed the "Great Reset," aims to reduce government spending, deregulate financial markets, and adjust international trade policies to revive the middle class [11][13][15]. - The reset seeks to shift the capital structure from financial to industrial capital, addressing the high debt levels by controlling new debt and restructuring existing debt [16][18]. - Key strategies include significant cuts to government spending, encouraging private sector leverage, and reintroducing tariffs to bring manufacturing jobs back to the U.S. [13][14][15]. Group 3: Implications for Financial Markets - The article highlights the potential for a significant shift in the dollar's role in global finance, as reduced U.S. trade deficits could lead to decreased demand for dollar assets, challenging the high valuations of U.S. equities [47][48]. - Trump's policies may lead to a scenario where the dollar loses its safe-haven status, with both the stock market and the dollar potentially declining together [50]. - The article warns of a "triple kill" risk for U.S. stocks, bonds, and the dollar, particularly if the debt ceiling is resolved without debt restructuring, which could trigger market volatility [52]. Group 4: Future Scenarios - The potential for a "Hail Mary" approach, such as the "Mar-a-Lago Agreement," could involve restructuring U.S. debt with other nations in exchange for tariff concessions [53]. - If traditional monetary policy tools like interest rate cuts fail, the Federal Reserve may resort to quantitative easing or yield curve control to stabilize the economy [54]. - The article concludes that the outcome of Trump's policies could either lead to a new era of prosperity or exacerbate existing issues, with significant implications for asset valuations and market stability [56][58].