The David McWilliams Podcast America’s Dutch Disease: How Debt Became the World’s Hottest Export
26 snips
Aug 14, 2025 
Brendan Greeley, a financial historian and Financial Times writer, dives into the intriguing concept of America’s 'Dutch Disease,' where debt becomes a valuable resource. He discusses how the world’s demand for U.S. Treasuries turns borrowing into a commodity, affecting everything from the dollar's strength to manufacturing and Wall Street dynamics. Greeley also reflects on historical lessons from other nations, the quality of spending versus quantity, and the sustainability of America’s unique economic approach amid evolving global challenges.
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Debt As America's Commodity Tap
- Brendan Greeley reframes U.S. borrowing as a resource: American debt functions like an exportable commodity.
- That commodity status props up the dollar and reshapes domestic politics and industry.
Global Treasuries Keep The Dollar High
- The global demand for Treasuries keeps U.S. interest rates low despite rising debt levels.
- That demand makes the dollar overvalued relative to America's shrinking share of world trade.
Finance Swells, Manufacturing Shrinks
- Dutch disease explains U.S. deindustrialization and the outsized finance sector.
- Talent and capital flowed into finance because Treasuries acted like a lucrative export, hollowing out manufacturing.
