Part 5/8:
The political dimension of this financial instability cannot be overlooked. John Rapley highlighted that the unfolding crisis could present numerous political challenges for President Trump, who has historically correlated stock market performance with his success in office. Starting off his presidency amid significant market jitters could undermine his narrative if a downturn were to occur shortly after taking office.
Furthermore, the Trump Administration's reliance on AI and technology development creates a precarious balance. Should Deep Seek's low-cost model prevail in the AI landscape, it could jeopardize not only the technology strategy of the Trump Administration but also the broader economic goals it seeks to establish.