All for the better.

In the US, "A preliminary March survey of consumers showed sentiment sank by more than projected, while long-term inflation expectations jumped as the Trump administration pushes forward with higher duties on foreign goods," "while the UK economy shrank unexpectedly at the start of the year on weaker manufacturing and construction," and China sank into deflation in February. ET. In Germany, "The agreement by the parties hoping to form its government includes a 500 billion euro ($545 billion) special fund for infrastructure and plans to unshackle defence investment from the country's debt rules. Reuters. China's inflation rate fell to -0.70% in February. ycharts.com. One store, selling clothes, snacks and household products, on the outskirts of Beijing is holding flash sales four times a day, at which the price of an item is lowered progressively until someone buys it. "Chinese consumers grappling with uncertainty about jobs and income are increasingly turning to discount stores," but "analysts say the success of such businesses is stoking deflationary pressures." Reuters. "Deflation is a decrease in the general price level of goods and services." cfi. Which means that the value of currency goes up. When prices fall consumers defer their purchases hoping for even lower prices, which sets up a spiral of falling prices and causes a recession. Starting in 1990, Japan experienced the lost decades during which, "over the period of 1995 to 2023, the country's nominal GDP fell from $5.33 trillion to $4.21 trillion, real wages fell around 11%, while the country experienced a stagnant or decreasing price level." wikipedia. "China announced a 'Special Action Plan to Boost Consumption' yesterday in a bid to prop up domestic consumption in the world's second largest economy." "The plan calls for actions to increase incomes of both urban and rural residents, as well as farmers." CNBC. In January, "China added more home appliances to the list of products that can be used in its consumer trade-in scheme." "China last year apportioned about 150 billion yuan from the 1 trillion yuan special Treasury bonds issuance to subsidise replacements of old appliances, cars, bicycles and other goods." "The campaign resulted in 920 billion yuan in auto sales and 240 billion yuan of home appliances sales in 2024." Reuters. "China's exports grew slower than expected in the first two months of the year, official data showed.., as a deepening trade war with the United States piles on economic malaise." ET. "Beijing will 'resolutely counter' US pressure on tariffs and the fentanyl issue, China's foreign minister said.., adding that major powers 'should not bully the weak', in a veiled swipe at the Trump administration's foreign policy." Reuters. That is hilarious, indeed. China has been pursuing a 'cabbage strategy' or 'salami slicing' against all its neighbors for decades (Jagran Josh) and dares to preach to the US. The old system was making countries like China ever more strong. Perhaps, President Trump can stop that. We hope.