pull down to refresh

Here is the Wall Street Journal article from today:
It links to the original "white paper" for the Accords...
And here is the speech at the White House, from* just 3 days ago*, given by Steve Miran on the "Global Public Goods" that the World (ie other countries) will need to pay the United States for.
It's remarkable that such an important speech hasn't been better covered.

Just a few highlights:
I’m an economist and not a military strategist, so I’ll dwell more on trade than on defense, but the two are deeply connected. To see how it works, imagine two foreign nations, say China and Brazil, trading with each other. Neither country has a currency that is trusted, liquid, and convertible, which makes trading with each other challenging. However, because they can transact in U.S. dollars backed by U.S. Treasuries, they are able to trade freely with each other and prosper. Such trade can only occur because of U.S. military might ensuring our financial stability and the credibility of our borrowing. Our military and financial dominance cannot be taken for granted; and the Trump Administration is determined to preserve them.
What a joke. Why not just use Bitcoin?
In my view, to continue providing these twin global public goods, there needs to be improved burden-sharing at the global level. If other nations want to benefit from the U.S. geopolitical and financial umbrella, then they need to pull their weight, and pay their fair share. The costs cannot be solely borne by everyday Americans who have already given so much.
Why wouldn't other countries just say... hey Americans Go F*** yourselves?
First, other countries can accept tariffs on their exports to the United States without retaliation, providing revenue to the U.S. Treasury to finance public goods provision. Critically, retaliation will exacerbate rather than improve the distribution of burdens and make it even more difficult for us to finance global public goods.
In other words... we need to get independent of the Americans right quick... and not depend on them as fast as possible.
Second, they can stop unfair and harmful trading practices by opening their markets and buying more from America;
And what if they don't want to buy more American Junk?
Third, they can boost defense spending and procurement from the U.S., buying more U.S.-made goods, and taking strain off our servicemembers and creating jobs here;
Oh they'll boost defense spending alright... but by eventually subsidizing their own defense industries.
Fourth, they can invest in and install factories in America. They won’t face tariffs if they make their stuff in this country;
So it's basically extortion... of non-US firms?
Fifth, they could simply write checks to Treasury that help us finance global public goods.
Hey Americans, go F yourselves OK?
Burden sharing can allow the United States to continue leading the free world for many decades. It’s a must not only for fairness, but for feasibility. If we don’t rebuild our manufacturing sector, we will be strained in providing the security we need for our safety and to underpin our financial markets. The world can still have the American defense umbrella and trading system, but it’s got to start paying its fair share for them. Thank you, and I am happy to take some questions.
To which other countries would say... hey Americans, go F yourselves? How do we get OFF Treasuries and the Dollar?
What a huge miscalculation, in my opinion, by the US government. Bitcoin is that trusted, liquid, and convertible capital that can't be controlled by the Americans... and it's a great tool to use when being faced by a bully.
The whole speech is a great read.
It's basically just a classic mob shakedown: "Those are some nice voluntary trade relationships you have there. It would be a shame if something happened to them."
Through the magic of statism, people are celebrating this as brilliant negotiation and strategy, rather than condemning it as the extortion it obviously is.
reply
From the New York Times yesterday:
Amid the tumult, other markets considered alternative safe havens to the United States have gained. Yields on German government bonds, which serve as the benchmark for the eurozone, fell on Wednesday, indicating strong demand. Gold prices rose, too.
“The global safe-haven status is in question,” said Priya Misra, a portfolio manager at J.P. Morgan Asset Management. “Disorderly moves have happened this week because there is no safe place to hide.”
“Optically, in some countries now you don’t want to show an overweight position, or maybe even an equal-weight position, in the U.S.,” said Peter Tchir, head of macro strategy at Academy Securities, an investment firm.
In a social media post on Wednesday, the former U.S. Treasury secretary Lawrence H. Summers said the broader sell-off suggested a “generalized aversion to US assets in global financial markets” and warned about the possibility of a “serious financial crisis wholly induced by U.S. government tariff policy.”
“We are being treated by global financial markets like a problematic emerging market,” he wrote.
“If they can do these extreme restrictions on trade, even with the closest allies, can they do restrictions on capital flows as well?” Mr. Nordvig asked. “Nobody knows. There is no limit here.”
reply
extortion
They can either play by the US rules or go home, how is that extortion?
Why not just use Bitcoin?
Solved it, what a genius, now go tell every country in the world something they don't know. They certainly won't laugh at the childish ignorance as to how complex supply chains and security zones are to refactor.
Why wouldn't other countries just say... hey Americans Go F*** yourselves?
Because they need us, having them is nice but we don't need them. They have zero leverage.
And what if they don't want to buy more American Junk?
They don't have to, but then they also can't sell their junk to us and make us prop up their worthless shitcoin to do so.
eventually subsidizing their own defense industries.
Some might, most though will recognize that the US security umbrella is still a better deal even if they can't freeload like they were before
Canada and Brazil aren't going to be creating expeditionary forces to protect their trade anytime soon.
a huge miscalculation
OP reads the editorialized WSJ and NYT trash as if they are serious publications by serious people, opinion invalidated.
reply
The rules being enforced through violence is how it’s extortion.
reply
Where is that happening?
reply
That’s literally the definition of the state. All of their rules are enforced by violence.
reply
The state is a monopoly on violence, that doesn't make it inherently coercive. The classical "outlaw" simply means no protection by the state.
Now not being retarded for a moment and accepting that the state is and everyone inherently lives under a state in a globally anarchic system, how is the US state extorting other states wrt trade?
Because they need us, having them is nice but we don't need them. They have zero leverage.
Bold words, for a nation 36 trillion $$$ in debt
reply
That's a fake number that's only made believable in a fiat system that you're saying we shouldn't change.
You're contradicting yourself.
We're the only economy that matters, and its been that way since at least WW2, which is why the dollar is the reserve to begin with. Given that, there's no way we could have debt, because you can't borrow from people without an economy of their own.
Every economy built since WW2 has been built with US support, and the globalists are big mad we're not footing the bill anymore.
reply
What a joke. Why not just use Bitcoin?
this I think about a lot. Like ... duh. Quite obviously the fix for this
reply
Well I mean if countries using the Dollar and Treasuries is such a burden for the United States... then they could just use something else problem solved
reply
Trump has already explicitly threatened BRICS nations with 100% tariffs if they use anything else!
'Trump threatens 100% tariff on BRICS countries if they pursue creating new currency
President-elect Donald Trump said he would require countries that are part of BRICS — a China- and Russia-backed group of emerging economies — to commit to not creating new currency or face 100% tariffs during his administration.
“The idea that the BRICS Countries are trying to move away from the Dollar while we stand by and watch is OVER. We require a commitment from these Countries that they will neither create a new BRICS Currency, nor back any other Currency to replace the mighty U.S. Dollar or, they will face 100% Tariffs, and should expect to say goodbye to selling into the wonderful U.S. Economy,” Trump posted on Truth Social on Saturday afternoon. '
reply
i saw that, which is what makes mr trump even more incoherent. if he wanted to expand the use of the dollar, it would be olive branches everywhere and diplomacy... but nope lol
reply
Trumps threat to BRICS is not incoherent or inconsistent with the reality that China now dominates global trade in manufactured goods and commodities and that China can sustain not just N.Korea, but Iran and more recently Russia with bilateral trade and trade settlement outside of USD/SWIFT but is building the protocol/s and alliances to greatly expand that tribute state empire much more broadly. Those protocols are nearing fruition.
This makes it logical for Trump to makes seemingly incoherent threats and do whatever he can to protect and preserve the global monetary hegemony which US still nominally holds because to not do so would allow an existential threat to US empire viability. The US without the seigniorage and rent on money that USD reserve currency status delivers, would be insolvent...very swiftly.
There are now enough nations who have switched to China's side or imminent to, that the situation is as urgent as Trumps desperate threats and blustering measures admit.
He is using bluff and bluster while he can. Has it ended the war in Ukraine? No. Has Putin bowed to Trumps threat of further sanctions. No. Has China bowed to the tariff threats and impositions? No. This is a standoff at or near the end of empire, about who controls global trade, trade payments, resources and territory.
reply
Because while Bitcoin is fantastic from the perspective of the sovereign individual it is not so helpful let alone desirable to the nation state and its power projection. It might be useful as a neutral refuge and safe haven SoV and MoE in an increasingly fractured and multi-polar world, but for China at least Bitcoin is the complete anti-thesis of the CCPs dreams for the future of empire. The EU is not keen either, nor really is Trump beyond gaining a vote bloc and crypto sponsorship opportunity and the potential for capital discretion. Stand up the brave nations who might allow Bitcoin domestically for citizens and for trade payments - the IMF and/or CCP will come after you!
reply
On April 2, the Trump administration announced tariffs of up to 104% on Chinese imports. In response, China imposed retaliatory tariffs of up to 84% on U.S. goods, starting on April 10. The trade war has triggered instability in traditional markets, pushing investors to consider alternatives like Bitcoin and gold. Analysts say Bitcoin is attractive in this climate because it’s not tied to any government and can’t be manipulated like national currencies.
Bitwise CEO Hunter Horsley explained that in times of uncertainty, investors want to avoid both U.S. and other nations’ assets due to fears of currency devaluation. He said Bitcoin offers a unique solution—it can’t be debased and is easy to access and control. VanEck’s Matthew Sigel added that Bitcoin is becoming more than just a speculative asset, with real-world use cases like international trade settlements starting to emerge.
necessity is the mother of invention... and people will use bitcoin, in my opinion, when they need to at the right time. yes even the eu weasels
also for a government (china) that doesnt like bitcoin... they sure make a lot of it
reply
Agree the speech exhibits immense arrogance and US exceptionalism entitlement and is exactly like mafia standover tactics - it does also explain the inner logic reasoning of the Trump administration very well. It explains the tariffs. It explains a lot more than the tariffs. It explains the position the US is now in. And to understand the speech and the position the US is now in one additional factor needs to be confronted- one not explicitly detailed in the speech, though implied, and not entirely a secret either.
China, leading BRICS nations is poised to challenge the USD hegemony over international bank payments. It has been enabling trade payments for N.Korea for decades, Iran for over a decade and Russia for several years...via shadow banking arrangements that are not fully publicly transparent, but which nevertheless provision trade payments liquidity nevertheless.
China has led the development of mBridge (with Thailand, The UAE and Hong Kong) which is essentially a protocol for enabling trade payments using CBDCs. Presumably the CBDCs have to met some criteria to be compatible with mBridge and this is where Chinas ambition to gain dominance over global protocols and institutions comes in. Brazil has already developed a very successful central bank operated domestic payments system...which is now spreading in acceptance across Latin America. Russia has announced its domestic digital payments system will be operational next year. India already has one operating. Thailand has one already operational too- it was used during Covid to make income support/assistance payments to eligible citizens where the payments must be spent at defined retail outlets and for defined goods- ie no booze or cigarettes. The UAE plans to implement its CBDC domestically by the end of 2025 https://www.businesstoday.in/technology/news/story/uae-to-launch-digital-dirham-by-year-end-to-modernise-payments-and-noost-financial-inclusion-470013-2025-03-31 The Saudis recently joined both BRICS and mBridge and are developing their CBDC trade payments in collaboration with the UAE. https://mecouncil.org/publication/cbdc-global-pioneers-a-roadmap-for-gulf-countries/
BIS, who had initially sponsored mBridge recently disowned it amid suggestions that it could be used to evade US/SWIFT trade payments sanctions.
The USD hegemony is facing Chinas challenge to it. And that threatens to result in US insolvency and loss of empire. Now we can understand the entire Trump agenda thinking and rationale.
China has won the trade war and quite logically and inevitably seeks to develop the tertiary institutional and protocols framework to enhance and strengthen the state power projection dominance that trade dominance both enables and requires for the sustained development of empire.
reply
Hideo Kojima predicted this lol. Weapons economy
reply