Onward, a Fundrise Production 46: Trump's Trade Roadmap: From Hidden Plan to Radical Reality
17 snips
Apr 21, 2025 Dive into the intriguing trade roadmap crafted by Stephen Miran for the Trump era. Explore potential futures—from global cooperation that could revive manufacturing to the real risks of recession and inflation. The discussion highlights the intricacies of U.S. trade policy, the dollar's dual role, and the impact of foreign sell-offs on American assets. Tactics used in trade negotiations are examined, revealing a calculated approach amidst aggressive rhetoric. Finally, the unmatched manufacturing strength of China complicates U.S. economic strategies.
AI Snips
Chapters
Books
Transcript
Episode notes
Dollar Overvaluation Drives Policy
- Trump's trade policy is driven by the view that the dollar is persistently overvalued due to other countries undervaluing their currencies.
- The goal is to use tariffs as leverage to rebalance this and support U.S. manufacturing competitiveness.
Dollar Strength Reflects Economy
- The dollar's strength aligns closely with the U.S. economic and stock market performance, not just its role as a reserve currency.
- Major dollar declines coincided with economic downturns, showing economic fundamentals trump currency status.
Inflation Tax on Foreign Holders
- The U.S. benefits indirectly from foreign holdings of its currency via inflation tax on those assets.
- Also, a strong dollar benefits Americans’ standard of living by making foreign goods cheaper.