Financial Crises and Global Economic Dynamics

This chapter explores the historical context of financial crises, comparing the Lehman Brothers collapse in 2008 to the recent Silicon Valley Bank failure in 2023. It discusses the implications of U.S. trade deficits and the hollowing out of manufacturing, alongside the rising influence of Bitcoin and stablecoins in the evolving economic landscape. The chapter also highlights the complexities surrounding U.S. debt management, national security concerns due to reliance on Chinese materials, and the uncertain future of global trade and reserve assets.