Why Trade Deficits Matter
In Warren Buffett’s Fortune article from 2003, he outlines a metaphorical system called “Squanderville vs. Thriftville”, using it to explain his concerns about the long-term consequences of persistent U.S. trade deficits. Here’s how Buffett’s analysis maps to Trump’s tariff strategy—along with a critique from the perspective of sound... See more
Everything Nowx.com
This means that the dollar tends to be structurally overvalued on a trade balance basis. It trades based on all of the normal fundamentals that other currencies do, but then also has this extra layer of demand at all times, for all these various purposes. Most currencies are primarily used by the country that issues them, whereas the dollar is used... See more