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The outcome of the presidential elections in the USA is more uncertain than it has been for a long time. But it is already clear that the division in the USA will continue to grow - no matter who wins. Even if a President Biden were to think and act differently than Trump, continued tensions in the USA could be expected in the future. "America is an extremely divided country with deep political divides, growing hostility and escalating conflicts. The transformation to the 'Un-United States of America' has long since begun, and the USA is gambling away part of its future," says Dr. Heinz-Werner Rapp, founder and head of the FERI Cognitive Finance Institute.
The widespread desire to replace Donald Trump obscures the political and social reality of the USA. It was reminiscent of a war of faith and had reached a critical point that would not suddenly dissolve even after the elections. Therefore - with every conceivable outcome of the election - the internal division of the USA would clearly increase. "Should Donald Trump clearly win the election, the USA will become an autocratic banana republic in the next few years. If the result is unclear, Trump will contest the election and thus trigger a deep constitutional crisis. If, on the other hand, Joe Biden actually wins, militant Trump supporters will permanently involve the country in dangerous conflicts," Rapp outlines the possible scenarios.
Although the US elections would produce a winner in the end, the losers would be the USA in any case. The political rifts are now so deep that rational politics across party lines is hardly possible. Important decisions for the future of the USA are being blocked; urgently needed measures are structurally endangered. "In key areas, such as the attitude towards China, the fight against climate change or the increasingly escalating national debt, the USA is losing strategic control, thus jeopardizing its future viability through its own fault," explains Rapp. For investors, too, this raises important questions that could lead to a more sceptical view of the USA, according to the FERI Cognitive Finance Institute.
In a detailed (German) study ("Risk Factor USA - The Problem of the Un-United States of America"), the FERI Cognitive Finance Institute analysed these problems at an early stage and pointed out consequences for investors.
Further analyses and studies in German language can be found in our Content Center.