Geopolitical Economy Report Trump's tariffs could cause huge global crisis, warns economist Michael Hudson
Feb 4, 2025
In this engaging conversation, Michael Hudson, an award-winning economist known for his critique of neoliberal economics, warns that Trump's tariffs could lead to a destabilized global economy. He discusses potential financial crises stemming from currency depreciation and the challenges countries face in paying foreign debts. Hudson critiques U.S. protectionist policies and austerity measures, emphasizing the need for unity among nations affected by these economic shifts. The conversation also touches on the broader implications for trade, inflation, and U.S. imperialism.
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Tariffs and Global Economy
- Trump's tariffs threaten the global economy by disrupting the dollar-dependent system.
- Countries need dollars for debt and imports, but tariffs restrict access, causing potential crises.
Misunderstanding Protectionism
- Trump's tariff policy is based on a flawed understanding of protectionism's historical context.
- While historically effective for some, current global dynamics make it counterproductive.
Economic Colonialism
- The US wields its economic power coercively, unlike China's win-win approach.
- This coercive approach creates an 'us vs. them' dynamic, pushing countries to find alternatives.