The other part of the republican strategy (known as "starve the beast") tax cut higher deficits will be used to fight for the so-called entitlement spending cuts, such as medicare, medicaid, food stamps and social security. Again, this is a risky proposition because the elderly, the middle class and the low-income americans depend heavily on these programs. Yes, the working and non-working poor, who get welfare or food stamps, include minorities who tend to vote for the Democratic Party. But the millions of blue-collar, socially conservative whites who voted for Mr Trump relied on these and similar schemes. On the other hand, if investors think that inflation will worsen or worsen, interest rates may rise to curb inflation, and bond prices will fall. First half of the 1980 s, the United States there is a lot of huge budget deficit and trade deficit, the dollar remains strong, is the United States adopted a policy of high interest rates, which makes a lot of capital from Japan and Western Europe into the results of the United States. The trend of the dollar has been greatly influenced by interest rate factors. Interest rate decision theory What happens next? Opportunities in 2018