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0 sats \ 0 replies \ @Solomonsatoshi 13 May \ on: Uncommon Opinion: Tariffs are for Free Trade (Financial Times, Oren Cass) econ
I think Trump just needed to quickly reduce US consumption and the US fiscal deficit because the ability to sell USTs was looking increasingly difficult with a $37T debt burden and about $8T needing to be refinanced before Christmas with much higher interest rates than when they were refinanced during the Covid pandemic at historically very low rates.
Yellen only refinanced on short terms to get the lowest rates but now that looks in hindsight like a very short sighted strategy.
USA is looking close to insolvency and Trumps tariffs are a desperate attempt to stave of the wolf from the door.
USD dominance has been in decline since at least 2015 and China is gradually advancing its alternative trade payments routes- already providing Iran, Russia and N.Korea with trade payments completely outside the control and even monitoring capacity of the USA and its World Bank IMF institutional framework of global monetary hegemony.