Trump’s Explosive WEF Speeches Demand Global Rate Cuts & More

In high-profile addresses at the World Economic Forum in Davos, President Donald Trump delivered a series of bold statements touching on everything from inflation and energy policy, to emerging technologies and international trade. He also strongly demanded that global interest rates drop. The speeches triggered immediate reactions in financial and political circles.

Trump began by criticising the current administration under President Joe Biden, accusing it of losing control and creating record-high inflation. He claimed that total government spending is now $1.5 trillion higher than projected when he left office, calling it the highest inflation in the country's history. The President also touted a new economic golden age, proclaiming that the economy will be “soaring like we’ve never seen.”

He announced that he would seek to pass the largest tax cut in American history to stimulate domestic growth, vowing to reduce corporate taxes to 15% for companies that manufacture products in the United States. He declared that if you don’t make your product in America, you will pay a tariff, signalling a strong stance on trade protectionism.

In a departure from previous environmental initiatives, Trump reiterated that he had terminated what he described as the “green new scam,” emphasising his administration’s commitment to conventional energy sources. He said the U.S. has the largest amount of oil of any country on earth, and they’re going to use it. The President also pledged to request that Saudi Arabia and OPEC lower the price of oil, arguing that if oil prices come down, the Russia-Ukraine conflict would end immediately. However, analysts quickly pointed out the apparent contradiction: Cheaper oil prices could undercut domestic producers, making it difficult to reconcile Trump’s simultaneous desire to boost American energy output. We shall see which is true. He also voiced support for advanced technologies in energy generation, stating that AI power plants can fuel themselves with anything they want—coal as backups if necessary. He promised to utilise “emergency declarations” to expedite approvals for LNG and other energy projects, insisting the United States needs double the energy it currently has.

One of the most striking moments of the first address came when Trump declared the U.S. will be the world capital of AI and crypto. Bitcoin prices reacted almost immediately, rallying on his comment about solidifying the United States’ position in the crypto space. In stark contrast to previous scepticism toward digital currencies, Trump hinted at embracing blockchain innovation and artificial intelligence as cornerstones of future U.S. economic policy. This move resonated with tech investors and cryptocurrency enthusiasts alike.

During the Q&A session, Trump criticised European nations for their lengthy approval processes and alleged protectionist measures against U.S. farm products and automobiles. “The EU treats the U.S. very badly,” he claimed, emphasising the need to reduce trade deficits and push for “rapid approvals” on LNG exports to Europe. The President repeated his tough stance on trade with Canada and China as well, insisting the United States does not need Canadian lumber or oil and gas. Regarding China, he called for “fairness” and alluded to prior discussions about de-nuclearization with both China and Russia, noting that Ukraine is ready to make a deal to end the ongoing conflict, which he believes has caused more casualties than reported.

On defence matters, Trump announced his intention to urge all NATO allies to increase their defence spending to 5% of GDP, stressing that the U.S. would no longer shoulder what he perceives as an outsized share of the alliance’s costs.

In another speech that just happened, Trump reiterated that he will demand that interest rates drop immediately. He also wants to see rates around the world fall. If his pressure ripples through and instigates change, this could mean a tsunami of liquidity could be coming. If so, buckle up for severe currency devaluation globally.