The Money with Katie Show Talking Tariffs and Trade Wars with Grace Blakeley and Kathryn Edwards
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Apr 23, 2025 
Join economist Kathryn Edwards, known for her labor economics insights, and writer Grace Blakeley, a vocal critic of capitalism, as they dive into the complexities of tariffs and trade wars. They explore how U.S. trade policies are reshaping global trust and financial dynamics. The discussion reveals the potential decline of the dollar's dominance and the impacts of rising inequality and corporate behaviors in America. Listeners will discover the urgent need for collective action to address these pressing economic inequities.
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Decline of US Dollar Hegemony
- The US dollar's status as the global reserve currency is declining, signaling a tectonic shift in global finance.
- This shift threatens America's ability to fund deficits cheaply and maintain global economic dominance.
Reserve Currency Status Is Long Decline
- The US losing reserve currency status is not a sudden event caused by Trump but a decades-long trend.
- Policymakers debate shifting to a global reserve currency to reduce US economic costs and vulnerabilities.
US Economy's Dollar Cycle and Imbalance
- The US current account deficit is financed by foreign investment, especially in government bonds and equities.
- This financial inflow sustains the dollar but creates an imbalanced economy favoring finance over manufacturing jobs.