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Tariffs of goods may be a prelude for money-related tariffs


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This month, many investors are dazzling and feel mixed. Not Surprising: As a flirting with the US government Another parcel President Donald Trump strengthens the trade war, Indicators of economic uncertainty In 2020, 2020 pandemic or twisted from the global financial crisis of 2008.

However, uncertainty may worsen. Among all the tariff blows, there is another question, there is another question: can Trump cause free trade attacks? Can tariffs for goods be a prelude for the tariffs?

Until recently, the concept looked crazy. After all, as most of the Western economists, as one of the best for America, because they helped to finance $ 36 billion and business for America. For example, Trump adviser Elon Musk, some investments benefited, some of them Private.

But there are some maverick economists like Michael Pettis long-term This is from the appearance of the Orthodox. Pettis does not see this capital streams as “mere”, but not American trading deficit inevitably, useful, corary, but weakening. In other words, the flow increases the cost of the dollar, leaving the American industrial base, which is an empty-scale financial base, that is, “Capital trade is transformed into a tail.”

Pettis wants curls like taxes for this reason. And six years ago, Democratic Senator Tammy Baldwin and Cosh Hawley, Republic counterpart, gave a bill in Congress, Competition Dollars for the act of work and prosperityCapital streams and a federal spare fee of a weak dollar policy.

The bill has died. However, the American compass last month, the vice president announced that the close conservative thinking tank, capital flows Can earn 2Tro dollars over the next ten years. Then the White House was given a “America’s first investment policy” Among other things, the order, which has a “postponement or cancel” a contract in 1984, 30 percent tax was removed for the revenues of China capital.

This did not catch the headlines because the Trump “set the zone flood”, especially in the tariffs distracted. But this Spoooked Asian observers Probably, some investors contributed to the fall of the latest US exchanges because he escaped in advance.

In fact, a tax turn cannot occur – or may affect someone other than the Chinese. Trump, famous politics, especially those around the world, are in the fraction of at least three warfare (like Stephen Bannon) and the Techno-Liberkari) and the Pro-Maga Congress Republicans. The last two fractions can fight equity crabs due to concerns that stabilize treasury markets.

However, Trump also eats all existing tools to strengthen his arm on the world stage. And the ideas of Pettis, the Treasury Secretary Scott Bessent, Stephen Miran, the Chairman of the Council of Economic Advisors and some consultants such as Vance, like Vance and Vance.

Global Trade and Finance in this Trinity Think to reset through a Putaved Mar-a-Lago AksterikTheir ambitions are on a grander scale relative to the 1985 Plaza ACCORD. The second was “just” the dollar was weakened by joint currency intervention, but miran’s visually Mar-A-Lago ACCORD’s reconstruction of several US debts, which will force some treasures to change for eternal bonds.

Michael McNair look forward to seeing some well-related financial analysts A Sovereign Wealth Foundation, Supported by American gold reserves, it will receive non-dollar assets to balance capital revenues (Greenland’s resources). A third idea is to apply tax on a broader sense of capital. The idea of ​​extinguishing debt can be a preferred approach as rating agencies rating agencies that threaten to lower US debts.

“(Trio’s) Ultimate Goals is not a major structure of rules that regulate capital flows, not a number of bilateral (trade) deals, but the rules McNair says. “This approach is seen to be successful, but itself is more suitable and far more than they know most observers.”

Let me notify that I do not confirm that or forecast this with any confidence that this will happen. And it should be noted that the theories of Pettis lead to anger among many major economists.

But the pettis is Inexperienced. And critics should also note that the 2019 Baldwin-Hawley bill was not only applauded by the conservative groups such as American compass, But some union sounds. Since the populist appeal is, you can still fly.

In both cases, the main point of understanding is the potentially deepening by John Maynard Keynes in the economic philosophy, as the second World War, or in the 1980s. Like the Bridgewater Hedge Foundation Greg Jensen this recently blockedMilton Friedman Parafrasing: “We are all mysteriously as we all.” Do not expect to be reverse at any time soon.

Gillian.tett@ft.com



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