Trump's delusions are always crashing with reality
Fixed...
Another time honored adage, "you get what you pay for", needs a touch of updating as well. In regard to the US presidency, "you get what Elon Musk pays for", seems more "appropriate".
The catch is that what Trump started in 2018 Biden continued in 2020 via America First and even the Inflation Reduction Act.
More important, this is actually about an issue that's almost 70 years in the making: the U.S. has seen its economic growth rate experiencing a downward trend since the early 1960s, followed by increasing trade deficits starting in the mid-1970s, and dealt with through financial deregulation leading to soaring overall debts starting in the early 1980s.
In short for around four decaded the U.S. has been borrowing heavily to spend heavily, while the rest of the world is counting on the U.S. to continue doing that because it needs more dollars to pursue industrialization and economic growth.
The debt levels are now so high the country has to borrow more each time just to pay for part of the interest rate of previous debt. In short, total debt is now mathematically impossible to pay, and it looks like the U.S. has no other direction except to continue doing what it's been doing for decades.
The catch is that some of the countries that have been relying on it to do that have become economically stronger. It looks like BRICS and emerging markets may eventually take over the world economy, and when they do, what's the likelihood that they will still rely heavily on the dollar for trade?
If demand for the dollar drops, then its value will weaken, and the U.S. won't be able to borrow and spend more. Its costs will soar while the value of its dollar drops. Several countries that have dollar holdings or hold U.S. debts, like China and Japan, may dump them or demand to be paid back. Would that lead to the U.S. giving up physical assets as payment?
Will the U.S. military industrial complex, which has been bullying many countries for decades and which also relies on the strong dollar, agree? Or will the U.S. end up like several of those countries, not even making U.S.-made iPhones but cheap smartphones at Third World prices?
