Convergence: Part 1: Geopolitics
Part 1: Geopolitics A User’s Guide to Restructuring the Global Trading System - The Administration’s Argument for Global Instability For decades, the United States accepted the Triffin Dilemma , the economic dilemma where the U.S. was required to run trade deficits to provide the world with the reserve currency it needed to function. The current administration has checked out of that arrangement. The goal is no longer global stability; the goal is the Mar-a-Lago Accord. A deliberate, coordinated, and, if necessary, coercive, devaluation of the U.S. Dollar (USD). The Overarching Goal Trading partners must either share the cost of the USD’s reserve status or watch the U.S. unilaterally debase it to favor domestic manufacturing. _____________________________________________________________________ Step 1: Implement Graduated Tariffs Phase-in Tariffs to raise revenue and generate negotiating leverage. The original initiative envisioned a 60% baseline tariff on Chinese imports an...