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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

show all 10 comments

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...

Dagoba 2025-07-08 10:01:45

Carter Braxton

techriot@hub.natehiggers.org

@Emmanuel Florac You really do believe that, don't you? Trade deficits results in profits and loss, imports and exports between private entities. Government overspending causes national debts.

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.

Tatooine 2025-07-08 16:50:10

Carter Braxton

techriot@hub.natehiggers.org

@Emmanuel Florac Yes, accumilated deficits will add to national debts but in the context of modern US debt, it is hardly fair to place the lion's share on trade imbalances, as some are wont to do, when anyone paying attention can clearly see, that US debt is the product of uncontrolled spending by the US Congress.

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.

Yavin 2025-07-09 08:11:22

Carter Braxton

techriot@hub.natehiggers.org

@Emmanuel Florac Yes, some of that rings true. However, I don't think that losing the USD as a reserve currency would hinder the US. The USD has been the reserve currency for many decades now and the people in charge have managed to wreck that presumed opportunity still.

No, I propose that the pressure would be off the American people and indeed, the people of the world if the USD was no longer a reserve currency. The US has become fat and lazy, a big welfare state in her own right but she does not have to linger in such stagnation. If she would give up her delusions of empire, perhaps, she could compete again. Perhaps, she could make goods and services available that others would seek.

No my friend on closer observance, one could make arguments as to why the USD as the world's reserve currency, may indeed, be an albatross around the necks of mankind, including the Americans themselves and a yoke to be cast aside.

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.

Alderaan 2025-07-09 11:23:16

Carter Braxton

techriot@hub.natehiggers.org

@Emmanuel Florac Indeed, Americans don't know what's really good for them, do they? Here we have a whole world trying to fix them and they're like the half dead patient that refuses to take his/her medication.

Americans don't realize that having the dollar overthrown and actually accommodating BRICS, would do us much more good than harm. Of course the delusions of empire would have to be lost.