Part 4/8:
One of the critical points raised by Charles was the concerning trend regarding tax revenue. He indicated that a significant portion of tax revenue, about 16%, is currently being allocated to pay interest rates, a figure projected to rise above 20% soon. This looming increase raises questions about economic sustainability and puts additional strain on the market, particularly as policymakers navigate the complicated landscape of tax and fiscal policies.
Charles also touched on the implications of a strong dollar in the context of international trade, particularly concerning tariffs imposed on China. He posited that the strength of the dollar could inadvertently benefit China's position in the trade war, complicating the efforts of the U.S. government.