←back to thread

Growing trade deficit is selling the nation out from under us (2003) [pdf]

(faculty.washington.edu)
162 points TaurenHunter | 2 comments | 04 Apr 25 09:20 UTC | HN request time: 0.406s | source
Show context
torginus ◴[04 Apr 25 09:54 UTC] No.43580085[source]▶
This would be true for any other country, but the dollar is the world's reserve currency. The US can simply go 'money printer go BRR' and create money out of thin air, without devaluing the dollar too much, which it can exchange for physical goods.

The US creates a 'trade deficit' by swapping things that have imaginary value for things that do not. Under these circumstances they'd be foolish on not running a trade deficit.

But if Trump gets his way, that world will be soon over, and people will trade in whatever they have so will no longer be compelled to hold USD.

replies(1): >>43582010 #
1. collaborative ◴[04 Apr 25 13:25 UTC] No.43582010[source]▶
I don't understand how nobody in the media is talking about this. The world accepts the US as the producer of currency, trades energy in dollars, etc. The US gets to print money for free, how is that bad for the US?

So far I can only see 2 reasons why Trump wants this:

1. He believes the US can force others to pay even more, via tariffs, and they will just accept it. No retaliatory tariffs. Kind of like how he says Greenland will be handed to the US no problem. Dishonest? Delusional? Bullyish?

2. The theory of him being a Russian asset is true, and this is the way for Russia to undermine the US while looking like Trump is rooting for the US. The real plan is for the world to drop the dollar. I don't like conspiracy theories but it just makes no sense otherwise

replies(1): >>43618218 #
2. deathlight ◴[08 Apr 25 03:55 UTC] No.43618218[source]▶
Trump has been singing the same tune for over 40 years. If he's an asset of anybody it's Lou Dobbs, not Putin.