After tariff shock, Trump may weaponise finance against allies
Voroxpete @ Voroxpete @sh.itjust.works Posts 0Comments 2,381Joined 2 yr. ago
Voroxpete @ Voroxpete @sh.itjust.works
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Ironically, this would largely achieve Trump's goal of lowering America's trade deficits. A big reason why America runs such deep deficits is because the strength of the dollar makes it less attractive to buy from the US, but the dollar never weakens because it's the global reserve.
Of course, when OPEC discussed moving away from the dollar Trump lost his shit, so it's not like this is his actual plan. There's no 5D chess here, they're all idiots. Nor would intentionally devaluing the dollar to increase US exports be a smart idea, but it is something that has been seriously proposed by one of Trump's economic advisors.