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May 2025 Newsletter: A Trade Breakdown
The End of The Beginning
aitkenadvisors.com
Let's go to the last part of the Miran's paper, which is currencies (Chapter 4 & 5).
Remember that his articulation of all the ills of the US trade imbalance is about the USD as a reserve currency & also the security support the US has to do (two burdens) that has grown, dwarfing the US economy RELATIVE size.... See more
Trinhx.comThese trade deficits are self-reinforcing rather than planned. It’s not like the global reserve country necessarily decides to have persistent trade deficits. Using the United States as an example, if the whole world agrees or is forced to mainly use dollars to buy commodities and settle the majority of international deals, then there is naturally
... See moreLyn Alden • The Global Dollar Short Squeeze
The Triffin Dilemma Unfolds
In the 1960’s, economist Robert Triffin noted that global reserve currencies have to run large persistent trade deficits, which has been coined the Triffin Dilemma. If the reserve country doesn’t supply the world with a lot of their currency, then the world simply can’t use that currency for international trade, commodity
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