Bloomberg Businessweek US Stance in Age of Economic Warfare; Broken Student Loan System
Apr 16, 2025
Edward Fishman, Senior Research Scholar at Columbia University, discusses the U.S.'s credibility in a global trade war and the implications of economic warfare. He examines the delicate status of the dollar as the world's reserve currency amid fiscal challenges. Meanwhile, Janet Lorin and Jillian Berman shine a light on the crisis in the student loan system, revealing the urgent need for reform as the debt burden reaches $1.6 trillion. Their insights navigate the strained relationship between higher education and government funding, shedding light on potential solutions.
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US Dollar as Global Economic Choke Point
- The US dollar dominates 90% of foreign exchange transactions, making it a key global economic choke point.
- The dollar's role enables the US to impose sanctions and finance deficits without balancing the budget.
Risks of Dollar Losing Reserve Status
- Tariff escalation risks weakening the dollar's safe haven status, threatening US economic and geopolitical power.
- A weaker dollar reduces purchasing power and complicates deficit financing.
Manufacturing for National Security
- National security concerns justify some domestic manufacturing to reduce reliance on adversary supply chains.
- US pharmaceutical supply chains need trusted sources, not full domestic autarky.
