Andy Constan on Trump Tariffs
No Trade Is Free: Changing Course, Taking on China, and Helping America's Workers
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The budget deficit stimulates the economy. Without it, the recovery could not have been as fast and vigorous as it turned out to be. The recovery, combined with high interest rates and the influx of foreign capital, tends to keep the dollar strong. The recovery, combined with a high exchange rate, tends to suck in imports and create a trade defici
... See moreSubstack • The ‘Imperial Dollar Milkshake Circle’
In the real world, of course, financial assets grow over time as well. Figure 5, above, shows what the distribution of total assets would be like after one year in the hypothetical case where each category of financial asset has grown in proportion to the increase in net worth.
The stock of equities increases, for example, because owners of firms is
... See moreDr. John Rutledge • How to Think About the Deficit, the National Debt, and Interest Rates
Debt Bombshell: U.S. Interest Payments Soar to $1.1 Trillion in Q1, Devouring 35% of Tax Revenue, Exceeding National Defense Spending.
Carl ₿ MENGER ️ • Tweet
While deficits of $1T+ per year, with debt repayments of nearly $1T themselves, people think this is unsustainable short term and will combust. I disagree, there is atleast a 5-10 year runway without the existential crisis, however as I said in TechDollar 1, it will get worse every year, the money printing will exacerbate all the issues internally ... See more
Dan • Tech Dollar 2: The War of the Worlds and Fate of the Dollar
... See moreThe original Trump tax cut and spending expansion pushed up the deficit at a time when the economy did not need a stimulus. The deficit then surged with the first COVID relief bill, but that made sense given the impact of the economic shutdown. By contrast, massive additional stimulus under Biden, when the economy was already rapidly recovering, wa