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dev-ns8 2 days ago

Who knows if this is the reason that Trump is putting in place this trade war and increasing tariffs, but this paper is a very interesting perspective on why someone in the position the US is in, in regards to the global economy is extremely thought provoking [1].

Seeing as how Trump appointed the author into his political circle though could be evidence this is the ultimate goal.

The paper is quite lengthy, however, in the beginning Stephen explains this idea of the Triffin Dilemma. A country that acts as the worlds reserve currency and thus creates enormous demand for their currency for things outside of goods are at a disadvantage that exasperate their trade deficit. This is implicit for a countries currency where most global trade is settled in their dollars, not to mention the benefits of holding the world reserve currency as a value store or investment.

I've wondered since the tarifs were announced how much impact they can actually have, but besides that point what is a reserve currency country to do? Give up their reserve currency status? There are significant downsides to that as well...

[1] https://www.hudsonbaycapital.com/documents/FG/hudsonbay/rese...