Apolitical perspective on Trump's tarriff war. The goal is to devalue USD way out of Triffin dilemma
The trade of last 30+ years made dollar very overvalued. Strong dollar befinets import, discourages making something competitive at home and export.
Trade deficits is just a visible tip of the iceberg. The root is the currency as well as other policies in persistent export surplus countries that subsidize exports. That's why China's 104% tarriff is not biggest retaliation. The bigger retaliation is its RMB against USD dropped to 7.4 from 7.1.
Link: https://en.m.wikipedia.org/wiki/Triffin_dilemma
Replies to: Apolitical perspective on Trump's tarriff war. The goal is to devalue USD way out of Triffin dilemma
Agree. I think this was a test balloon on multiple fronts. Although, this might be a bridge too far.
Not that the idea doesn't have merit, but the US as a country has had a long run of prosperity, and we don't really have the will to endure meaningful adversity for long-term improvement. Too much internal conflict as well.
But, I bet he adjusts his plan and makes a run at it in a different way.
A bridge too far? Yah think? He’s a delusional freak.
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No, I don't think so. But I don't think he can get done what he's trying to do in the time he has.
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The real goal.
The reality is that US manufacturing is in far better shape than Trump's rhetoric suggests. It's currently the second largest manufacturing base in the world, making up almost 16 percent of global output. While it's true that America has outsourced the labor of producing cheap consumer goods to the developing world, US manufacturing has shifted to high-tech industries like pharmaceuticals, aerospace, and semiconductors.
Link: https://futurism.com/china-mocking-ai-video-americans-sweatshop
He's trying to break China. That's the objective.
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Good luck. They can bear pain pretty well. You think our consumer society that created that cheap
goods monster can?
Put aside your hatred of Trump. What did we learn in the last 6 days?
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That we are led by a scattered brain maniac with no real plans. Just tosses out shit and sees what
happens.
That's "somewhat" better than if he has a plan to destroy the country. So I'm "somewhat" relieved.
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Well at least you have your son to guide you
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He’s pretty good. He handles institutional investors in his real job, but does some side hustle in
his own investing.