Peter St Onge Podcast Ep 121 Weekly Roundup: Japan Threatens Economic War
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May 19, 2025 Japan's finance minister threatens economic war by considering the sale of U.S. treasuries, raising concerns about financial stability. Meanwhile, a major push for re-industrialization in the U.S. could lead to a $5 trillion investment in manufacturing. The discussion also dives into the recent healthcare reforms aimed at slashing pharmaceutical prices, highlighting stark disparities in costs compared to other countries. Lastly, the issue of declining American savings and the poverty trap presents significant challenges for the economy.
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Japan's Economic Threat to U.S.
- Japan threatened to use its $1.1 trillion U.S. treasury holdings to crash the American financial system.
- This threat reveals how allies can turn hostile if perceived as exploited financially.
Pause in U.S.-China Trade War
- The U.S.-China trade war is paused for 90 days with tariff reductions announced by both sides.
- The deal hopes to revive commitments from the 2020 agreement, although China failed to fully comply previously.
Cut Regulations to Boost Manufacturing
- For manufacturing re-industrialization, Congress must reduce excessive regulations and red tape.
- Cutting thousands of regulatory jobs could unleash economic growth outside the Rust Belt.