Trump's Foreign Economic Policy in Disarray

 This article highlighted some of the challenges the United States is facing under the Trump administration, particularly in Argentina and China. Argentina's peso is experiencing a fall in inflation, which has slowed economic growth. There is also a very high unemployment rate, and exports have been below average.  The president of Argentina, Javier Milei, has promised to cut the budget deficit; however, the public's support for these new policies will not last long. The Trump administration has a plan to let Argentina's currency float more freely, which will then stabilize growth and employment, and exports should resume. This will help the Milei government repay what had been borrowed. 

In China, the constant war between Trump and Xi has no clear end in sight for the Trump administration. The promises from Xi to buy more US soybeans have been unfulfilled; however, Trump had held up his promise to scale back tariffs, suspend port fees for Chinese ships, and temporarily delay an expansion of the Entity List that had threatened Xi on rare-earth controls. Xi has the upper hand in this battle; if Trump threatens China with port charges, tariffs, or export controls, China will pull its rare-earth export controls.  Rare-earth exports are vital for the US, and currently, China holds the monopoly, which will not last long. 

https://www.project-syndicate.org/commentary/argentina-and-china-show-disarray-of-trump-foreign-economic-policy-by-barry-eichengreen-2025-11

Government shutdown now over as federal agencies reopen and employees return to work

    The longest record government shutdown in United States history (43 days) has officially came to an end. On Wednesday, November 12th, the House approved the Senate-passed funding package, and President Trump signed the bill into law. The legislation is extending funding for most agencies until January 30th and this includes three bills that will fund other parts of the government through September 30th. The Senate approved the legislation on Monday, where seven Democrats and one independent who associates with the Democratic party, joined the Republicans to end the standoff within the upper chamber. Six House Democrats crossed the aisle  and voted to reopen the government. 

    The government reopened this Thursday morning as many workers returned back to work and agencies ramped up normal operations. Back pay for some federal employees will begin going out as early as Sunday, according to a memo from the White House budget office. The others will have to wait until Wednesday, November 19th. The funding battle will begin to tee up a fresh fight over health care tax credits under the Affordable Car Act, which will expire at the end of this year. Millions of people across the U.S. are set to see their premiums spike without action from the Congress, and Senate Democrats secured a vote on the issue by mid-December as part of the deal that ended the the Shutdown. 

https://www.cbsnews.com/live-updates/government-shutdown-latest-trump-signs-funding-federal-agences-opening/

U.S. Markets – “Mixed Signals and Tech Trouble”

In the U.S., markets are sending mixed signals: some major indices are moving up, while others are slipping. For example, the S&P 500 recently fell by about 0.3% while the Dow Jones Industrial Average rose slightly. The Economic Times One big issue: tech stocks are under pressure, with major companies seeing drop-offs and weaker guidance. This is causing investors to rethink how fast growth can continue. Additionally, improved government funding news has helped sentiment, but worries about future growth and jobs remain real. 

So for students, the U.S. market right now is like a car going up a hill but with the engine making odd noises. The “hill” is moderate growth and solid fundamentals, but the “odd noises” are tech uncertainty, labor data that’s not strong, and policy questions. It’s a reminder: even big economies have weak spots.

https://economictimes.indiatimes.com/news/international/us/us-stock-market-today-why-sp-500-falls-while-dow-nasdaq-rise-heres-which-major-stocks-made-the-biggest-moves-today/articleshow/125253384.cms?utm_source=chatgpt.com&from=mdr

https://www.reuters.com/business/possible-us-shutdown-end-brings-investor-relief-fresh-data-focus-2025-11-10/?utm_source=chatgpt.com

Global Markets Rally as U.S. Shutdown Appears Nearing End

Global stocks surged, as markets responded to optimism that the long-running U.S. government shutdown may finally be coming to an end. Major indices from the U.S., Europe, and Asia posted meaningful gains after the U.S. Senate advanced a funding bill that would reopen the federal government and restore operations.

The rally reflects more than just relief; it highlights how deeply economic confidence is tied to political stability and the functionality of the government. With over 40 days of shutdown, the U.S. economy has already seen disruptions in air traffic, federal services, and critical data releases. The Senate's action thus offers a potential turning point, not only for government employees and contractors receiving back pay, but for broader business investment, consumer confidence, and financial markets. Still, analysts caution that while reopening is a positive sign, the delayed economic damage may linger, and the bill provides only temporary funding, meaning full resolution remains uncertain.

Article: Stocks rally, US Treasury yields advance on hopes for a US government reopening By Sinead Carew and Nell Mackenzie

Link: https://www.reuters.com/world/china/global-markets-global-markets-2025-11-10/

Memory Prices Are Soaring Because of AI

    Memory prices have jumped a lot this year. DRAM costs are up more than 170% because AI companies are buying huge amounts of it for their data centers. Chip makers are now focusing on high-bandwidth memory used for AI servers, which means there’s less supply for regular computers and phones. Some companies say they’re only getting about 70% of the memory they ordered. If this keeps up, smaller tech companies might struggle to get the parts they need, and everyday devices like laptops and phones could start getting more expensive.

Sources:

https://www.techspot.com/news/110173-ai-boom-drives-record-172-surge-dram-prices.html 

https://www.tomshardware.com/pc-components/storage/server-dram-prices-surge-50-percent