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2025-07-08 09:16:42

Emmanuel Florac

wazoox@diasp.eu

“Origin of the US trade deficit” Top Economist warns Trump - Steve Keen

#economics #geopolitics
https://yewtu.be/watch?v=bEjMsF3FQhE

“Origin of the US trade deficit” Top Economist warns Trump
by ProfSteveKeen on YouTube

Geonosis 2025-07-08 09:22:24

Carter Braxton

techriot@hub.natehiggers.org

@Emmanuel Florac Trade deficits of several hundred billions of dollars, should be the least of the problems, of a nation that has forty one thousand, billion dollars of debt, don't you think so?

2025-07-08 09:48:42

Emmanuel Florac

wazoox@diasp.eu

@Carter Braxton actually both are related. By having the dollar the world reserve currency, debt accumulation and trade deficit are unavoidable side effects. The world need dollars to trade, therefore they need extremely large amount of dollar-denominated assets in the form of US Treasury bills. There is no way around this.

2025-07-08 09:49:42

Emmanuel Florac

wazoox@diasp.eu

the accumulation of deficits leads to the accumulation of debt...

2025-07-08 15:14:07

Emmanuel Florac

wazoox@diasp.eu

@Carter Braxton trade deficits mean that the US imports stuff and exports dollars. For people outside of US to accept these dollars, there must be something to buy back, denominated in dollars, or they wouldn't take them. The stuff they buy back is Treasury bills. Fractional reserve banking implies that in all exchanges, there's a bank as a third party (see the video). When the money used as vehicle is USD, that bank is, in last resort, the Fed.

2025-07-09 01:57:55

Emmanuel Florac

wazoox@diasp.eu

@Carter Braxton sure, but OTOH this uncontrolled spending is necessary for the Empire to function... Dog chasing its tail. If the Congress stopped spending, then the USD would collapse and cease to be the world's reserve currency, and suddenly the inhabitants should rely on their own work only, because the influx of Chinese-made stuff would stop.

2025-07-09 11:08:54

Emmanuel Florac

wazoox@diasp.eu

@Carter Braxton yep, Steve Keen's definitely of the opinion that USD has been a boon but is now a hindrance to US welfare. A more neutral system such as the Bancor would probably be better for everyone in the long run.