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assayer
@assayer
Do Canada, Greenland, Mexico and Panama Canal annexations seem more realistic now? The "Liberation Day" story, where a "kind" Empire is ripped off by everyone else, was likely meant to prepare the US public for the consequences of a sad reality: $36 trillion in sovereign debt. As Larry Fink warns, by 2030, mandatory government spending and debt service will consume all federal revenue, creating a permanent deficit. Can tariffs cause a dollar shortage outside the US? In a repeat of 2008, could the swap lines for foreign banks be used to force the entire North America into a tighter US grip? Could a "continental US" with four new parts be integrated and defended as a self-sufficient economy and a new not-so-kind-anymore Empire, while the rest of the world faces the horror of a collapsing reserve currency and trade? Too crazy to be true, right? Right? https://www.youtube.com/watch?v=t_geFKCSgwg
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Stuart
@olystuart
I think it'll be like sanctions, instead of the intended purpose they'll just encourage everyone else to cut as many ties with the US as possible and build more resilient global systems not dependent on it like BRICS.
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Señor Doggo
@fubuloubu
This is more right than you know, since the world *has already* been doing exactly that: forming more trade relationships with a strengthening China, cutting off ties with a weakening US. Just doing it slowly so as not to piss off the (current) largest military power. What happens if you rip the bandage off? We are going to find out soon
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@assayer
What about debt denominated in dollars outside the US, such as the eurodollar system? And what about access to oil, which is tied to the petrodollar system? Additionally, there's the issue of trade safety, which is backed by US military power. Some believe that a dollar shortage, possibly caused by Trump's tariffs, will hit non-US economies faster and harder than the US. In such a scenario, where would the liquidity go? Are these new trade relationships strong enough already to withstand the pressure? Maybe they are... 🤔
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