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64 sats \ 16 replies \ @Undisciplined 10 Apr \ on: The WSJ (kinda) covers the Mar-a-Lago Accords plus Miran's Incredible Speech econ
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.
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.”
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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.
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The rules being enforced through violence is how it’s extortion.
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Where is that happening?
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That’s literally the definition of the state. All of their rules are enforced by violence.
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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?
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They’re threatening to infringe on the voluntarily made trade agreements between people from the foreign nation and their American counterparts, unless those nations alter their domestic policies in a manner that benefits the US government.
Now, I’ll readily grant that when those policies are themselves property infringements, this becomes much murkier.
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
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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.
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