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0 sats \ 4 replies \ @Solomonsatoshi 16 Mar \ parent \ on: Trump’s False Tariff “Fairness” Argument econ
Plus the Chinese tariffs?
Another way of putting it is operating a trade surplus for the last 7 decades means USA owns less and less of USA and is increasingly owned by foreigners who own US real estate equities, bonds and businesses and increased debt to foreigners- eg China.
USA sold.
Failing to operate a trade surplus inevitably results in need to sell assets and or take on debt.
That's what the USA has been doing for decades.
Spin it how you like, USA has been for decades failing to live within its means- using its financial dominance to sell off assets and increase debt.
Selling US Treasuries simply increases the level of debt US is obligated to redeem.
IE debt trap requiring an endless cycle of increasingly large debt raising exercises.
Increased foreign investment simply means less profits and control remain in US hands.
These are not good things.
These are signs of decline and decay.
Tariffs are simply trying to delay the almost inevitable insolvency of the US empire.
"Failing to operate a trade surplus inevitably results in need to sell assets and or take on debt.
That's what the USA has been doing for decades.
Spin it how you like, USA has been for decades failing to live within its means- using its financial dominance to sell off assets and increase debt.
Selling US Treasuries simply increases the level of debt US is obligated to redeem.
IE debt trap requiring an endless cycle of increasingly large debt raising exercises."
100% Agree. I wish more American understood this (and you're probably not even American).
The answers are:
- raise taxes and lower expenditures
- increase productivity of Americans (to raise tax revenue or increase wages)
- or ???
Saylor's 'speculative attack' through Stablecoins which Paul Ryan wrote about I think is being talked about in government. It will be interesting to see if it actually happens
#914617
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Trump is arguably trying 1 and 2, via tariffs which both raise revenue and reduce imports while encouraging domestic producers.
DOGE is also supposedly reducing expenditure as is requiring traditional allies to be more self reliance militarily.
3- concede defeat as the British did post WW2 and enable the transfer of hegemony in a manner as to preserve some of your wealth and power while accepting the age of US exceptionalism, is over...
Bitcoin is probably relevant here as a unique form of liquidity, wealth and capital free of any nation state dependency.
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Bitcoin is probably relevant here as a unique form of liquidity, wealth and capital free of any nation state dependency.
That's why it's amazing!
As far as #3 goes, that's exactly what Richard Wolf says.
If you haven't seen it it's a great watch. I'll check out the spider's web too...
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Yes I watched the Wolff video and largely agree with what he says.
Spiders Web is relevant to how declining empire of Great Britain preserved some of its wealth and financial system privilege.
Originally it was the British military who gained the Hong Kong territory lease thus positioning of British banks in Hong Kong which enabled British imperialism to gain access to Chinese markets and subjugate Chinese sovereignty as a result of The Opium Wars.
The Chinese have not forgotten the dual importance and strategic alignment of banking and military.
Today hundreds of CCP nominees are positioned within the HSBC and China via Hong Kong is reverse engineering the global trade payments banking protocols.
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