{"id":9921,"date":"2025-05-02T07:21:21","date_gmt":"2025-05-01T23:21:21","guid":{"rendered":"http:\/\/doolounge.com\/asset-bubble\/"},"modified":"2025-05-05T01:29:29","modified_gmt":"2025-05-04T17:29:29","slug":"asset-bubble","status":"publish","type":"post","link":"https:\/\/doolounge.com\/en\/asset-bubble\/","title":{"rendered":"Trump wants the New Taiwan dollar to appreciate to 13.3. What impact will this have?"},"content":{"rendered":"<p class=\"wp-block-paragraph\">As the tariff war heats up, the hottest topic for Taiwan recently is definitely the &quot;Mar-a-Lago Accord&quot;, the ultimate goal of which is to devalue the US dollar to the New Taiwan dollar to 13.3.<br \/><br \/>Everyone must be confused, wondering when this agreement was signed at Mar-a-Lago and when did the leaders of various countries go there?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/doolounge.com\/wp-content\/uploads\/2025\/05\/fb_img_17461416491931554097058456767020-1024x576.jpg\" alt=\"\" class=\"wp-image-9920\" srcset=\"https:\/\/doolounge.com\/wp-content\/uploads\/2025\/05\/fb_img_17461416491931554097058456767020-1024x576.jpg 1024w, https:\/\/doolounge.com\/wp-content\/uploads\/2025\/05\/fb_img_17461416491931554097058456767020-300x169.jpg 300w, https:\/\/doolounge.com\/wp-content\/uploads\/2025\/05\/fb_img_17461416491931554097058456767020-768x432.jpg 768w, https:\/\/doolounge.com\/wp-content\/uploads\/2025\/05\/fb_img_17461416491931554097058456767020-18x10.jpg 18w, https:\/\/doolounge.com\/wp-content\/uploads\/2025\/05\/fb_img_17461416491931554097058456767020.jpg 1067w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In fact, neither of them is true. Instead, Trump&#039;s important adviser S. Miram wrote a &quot;Guide to Reconstructing the Global Trade System&quot;. The document refers to the Mar-a-Lago Agreement and advocates the use of tariffs as a means to force countries to negotiate and devalue the dollar in order to revive the US manufacturing industry.<br><br>As for the debt problem, countries that have benefited unfairly from the tariff war are required to purchase interest-free ultra-long-term government bonds (Century bonds), such as directly buying a hundred-year interest-free U.S. Treasury bond, in order to resolve the current huge debt extension crisis that is about to expire.<br><br>And what exactly is the Mar-a-Lago Agreement?<br><br>That was a private estate that Trump, who started his career in real estate, purchased at a low price through a special transaction method when he was young.<br><br>The estate was originally owned by the Post family and later donated to the U.S. government. After holding it for a few years, the U.S. government realized that maintaining the estate would require enormous manpower and financial resources, and that taxes could not cover the huge maintenance costs, so it was returned to the family.<br><br>When he was young, Trump offered 25 million to buy the estate but was rejected. He then paid 3 million for the land in front of the estate and the beach. He also threatened to build a house to block the original unobstructed view of the estate, which directly reduced the willingness of other buyers. Finally, Trump bought this beautiful estate for only 7 million US dollars in 1985.<br><br>If the New Taiwan dollar exchange rate appreciates to 13.3 in the short term, in this situation, the purchasing power of the New Taiwan dollar will become stronger, which is beneficial to various imports, but it will also mean that Taiwan will completely lose its export competitiveness.<br><br>The most noticeable example of the actual impact caused by the exchange rate difference is the large depreciation of the Japanese yen in recent years. Although Japanese residents have been complaining bitterly, it has attracted a large number of foreign tourists, who have made large purchases and revitalized the vigorous development of local enterprises.<br><br>Although it is unlikely to be so exaggerated, if the New Taiwan dollar really appreciates to the extreme situation of 13.3 as foreign media said, hot money will directly flow into Taiwan, and the stock market and housing market will definitely soar in the short term, but exports will be completely ruined.<br><br>By then, it will definitely be the case that people who work hard will face unemployment, while those who speculate in stocks and real estate will be able to make huge amounts of money.<br><br>Due to the continuous outflow of cold money from corporate investment, there will be subsequent medium- and long-term industrial hollowing out and overall economic recession. Then there will be the lack of strength to recover after the bursting of the housing bubble, followed by a long-term recession of bankruptcy, unemployment and stock market bubble.<br><br>In fact, as long as the appreciation reaches a certain level, it will have a great impact on the country. Taiwan has also experienced a sharp appreciation of the New Taiwan dollar in the past, with an appreciation rate of up to 24.3%. Hot money poured into the country for arbitrage, and stocks and real estate soared. House prices in Taiwan directly quadrupled between 1986 and 1989.<br><br>At that time, everyone was crazy about stock speculation. The phrase &quot;Taiwan is flooded with money&quot; should be very vivid in many people&#039;s childhood memories. For example, their father did not come home every day. As soon as he opened his eyes, he ran to the stock circle.<br><br>However, the subsequent collapse and stock market crash caused many families to never recover. After all, too much leverage was used and the funds could not make up for the sudden drop in the value of their stocks, which led to countless people jumping off buildings.<br><br>Think about it, if Trump really wants the New Taiwan dollar to appreciate by nearly 300 %, with such an exaggerated increase, do you think Taiwan will be ruined in the short term?<br><br>Although negotiations are still ongoing, it is impossible for the currency to appreciate so dramatically in the short term. However, the issue of extending the maturity of U.S. debts, no matter how it is solved, will inevitably lead to a certain amount of appreciation of the New Taiwan dollar. After all, Taiwan is very dependent on the United States at this stage.<br><br>Having said that, as smart as you are, you should have figured out what to do with your existing assets!<\/p>","protected":false},"excerpt":{"rendered":"<p>Trump proposed the &quot;Mar-a-Lago Agreement,&quot; which aims to revitalize the U.S. manufacturing industry by devaluing the U.S. dollar and appreciating the New Taiwan dollar to 13.3 through trade and tariff measures.<\/p>\n<p>If this comes true, Taiwan&#039;s stock and housing markets may soar in the short term, but exports will be hit, industries will be hollowed out, and the risk of bubbles will be high, which may lead to a repeat of the tragedy of the hot money boom and financial collapse in the 1980s.<\/p>","protected":false},"author":2,"featured_media":9920,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"activitypub_content_warning":"","activitypub_content_visibility":"","activitypub_max_image_attachments":4,"activitypub_interaction_policy_quote":"anyone","activitypub_status":"federated","footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false,"beyondwords_generate_audio":"","beyondwords_project_id":"","beyondwords_content_id":"","beyondwords_player_style":"","beyondwords_language_id":"","beyondwords_title_voice_id":"","beyondwords_body_voice_id":"","beyondwords_summary_voice_id":"","beyondwords_error_message":"","beyondwords_disabled":"","beyondwords_delete_content":"","beyondwords_podcast_id":"","beyondwords_hash":"","publish_post_to_speechkit":"","speechkit_hash":"","speechkit_generate_audio":"","speechkit_project_id":"","speechkit_podcast_id":"","speechkit_error_message":"","speechkit_disabled":"","speechkit_access_key":"","speechkit_error":"","speechkit_info":"","speechkit_response":"","speechkit_retries":"","speechkit_updated_at":"","_speechkit_link":"","_speechkit_text":""},"categories":[860,770,817],"tags":[1234,847,849,881,820,1233],"class_list":["post-9921","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-insurance","category-estate","category-money","tag-1234","tag-847","tag-849","tag-881","tag-820","tag-1233"],"blocksy_meta":[],"featured_image_urls":{"full":["https:\/\/doolounge.com\/wp-content\/uploads\/2025\/05\/fb_img_17461416491931554097058456767020.jpg",1067,600,false],"thumbnail":["https:\/\/doolounge.com\/wp-content\/uploads\/2025\/05\/fb_img_17461416491931554097058456767020-150x150.jpg",150,150,true],"medium":["https:\/\/doolounge.com\/wp-content\/uploads\/2025\/05\/fb_img_17461416491931554097058456767020-300x169.jpg",300,169,true],"medium_large":["https:\/\/doolounge.com\/wp-content\/uploads\/2025\/05\/fb_img_17461416491931554097058456767020-768x432.jpg",768,432,true],"large":["https:\/\/doolounge.com\/wp-content\/uploads\/2025\/05\/fb_img_17461416491931554097058456767020-1024x576.jpg",1024,576,true],"1536x1536":["https:\/\/doolounge.com\/wp-content\/uploads\/2025\/05\/fb_img_17461416491931554097058456767020.jpg",1067,600,false],"2048x2048":["https:\/\/doolounge.com\/wp-content\/uploads\/2025\/05\/fb_img_17461416491931554097058456767020.jpg",1067,600,false],"trp-custom-language-flag":["https:\/\/doolounge.com\/wp-content\/uploads\/2025\/05\/fb_img_17461416491931554097058456767020-18x10.jpg",18,10,true]},"post_excerpt_stackable":"<p>\u5ddd\u666e\u63d0\u51fa\u300c\u6d77\u6e56\u838a\u5712\u5354\u8b70\u300d\uff0c\u76ee\u6a19\u900f\u904e\u8cbf\u6613\u8207\u95dc\u7a05\u624b\u6bb5\uff0c\u8b93\u7f8e\u5143\u8cb6\u503c\u3001\u65b0\u53f0\u5e63\u5347\u503c\u81f313.3\uff0c\u85c9\u6b64\u91cd\u632f\u7f8e\u570b\u88fd\u9020\u696d\u3002<\/p>\n<p>\u82e5\u6210\u771f\uff0c\u53f0\u7063\u77ed\u671f\u5167\u80a1\u5e02\u3001\u623f\u5e02\u6050\u98c6\u6f32\uff0c\u4f46\u51fa\u53e3\u53d7\u5275\u3001\u7522\u696d\u7a7a\u6d1e\u3001\u6ce1\u6cab\u5316\u98a8\u96aa\u9ad8\uff0c\u6050\u91cd\u6f141980\u5e74\u4ee3\u71b1\u9322\u6f6e\u8207\u91d1\u878d\u5d29\u76e4\u7684\u6158\u5287\u3002<\/p>\n","category_list":"<a 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