Monetary Matters with Jack Farley The Window of Vulnerability | Tian Yang on Global Imbalances, the Dollar, Growth Vulnerabilities, and Housing (Plus A Special Offering for Monetary Matters Listeners)
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Jun 22, 2025 
Tian Yang, CEO of Variant Perception, brings a wealth of knowledge on global economic dynamics. He discusses the rising global imbalances, the complexities surrounding the U.S. Dollar's status, and emerging market opportunities. Yang highlights the challenges facing U.S. homebuilders and the potential implications of a weakening dollar for international investments, particularly in Asia and Latin America. He also delves into the necessity of adapting investment strategies amidst macroeconomic uncertainties, emphasizing his data-driven approach.
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US Overconsumption and Dollar Strength
- The US consumes too much while the rest of the world consumes too little, causing global imbalances.
- The dollar is artificially strong due to its reserve currency status, preventing natural currency adjustments.
Political Shift in Trade Imbalance
- The US is trying to "turn the ship" on global trade imbalances through policies under the Trump administration.
- This political intervention marks a shift from the passive market adjustments of previous decades.
Dollar Reserve Status vs Valuation
- The reserve currency status and the dollar's valuation are separate; military and tech strength maintain the former.
- The least bad option to fix global imbalance is a weaker dollar via unlikely coordinated or unilateral actions, which will be disruptive.
