{"id":19343,"date":"2024-07-18T15:47:47","date_gmt":"2024-07-18T12:47:47","guid":{"rendered":"https:\/\/www.liberalglobe.com\/?p=19343"},"modified":"2024-07-18T15:47:47","modified_gmt":"2024-07-18T12:47:47","slug":"trump-presidency-2-0-the-dollar-will-be-sacrificed-to-deal-with-the-huge-public-debt","status":"publish","type":"post","link":"https:\/\/www.liberalglobe.com\/?p=19343","title":{"rendered":"Trump Presidency 2.0: The Dollar will be sacrificed to deal with the huge Public Debt"},"content":{"rendered":"\n<p>The US must abandon its \u201cmammoth deficits\u201d if it is to keep US debt levels manageable for decades to come. The over-indebted US economy can no longer bear, in the context of geopolitical realignments, to support the &#8220;excessive monetary privilege&#8221; of the dollar, and in order for the new presidency of Donald Trump not to be characterized by the &#8220;explosion&#8221; of the fiscal bomb, i.e. bankruptcy, the priorities must change.<\/p>\n\n\n\n<p>The Republican National Committee released Donald Trump&#8217;s presidential platform this week, a list of 20 points that will guide economic policy. At number 13, the former president pledges to keep the dollar as the world&#8217;s main reserve currency.<\/p>\n\n\n\n<p>However, a second Trump term may actually erode the dollar&#8217;s dominant role. Instead, the risk comes from a &#8220;severe deterioration&#8221; in economic and financial conditions in the US, as fiscal strength under Trump based on the current situation is unlikely.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"768\" src=\"https:\/\/www.liberalglobe.com\/wp-content\/uploads\/2024\/07\/image-61-1024x768.png\" alt=\"\" class=\"wp-image-19345\" srcset=\"https:\/\/www.liberalglobe.com\/wp-content\/uploads\/2024\/07\/image-61-1024x768.png 1024w, https:\/\/www.liberalglobe.com\/wp-content\/uploads\/2024\/07\/image-61-300x225.png 300w, https:\/\/www.liberalglobe.com\/wp-content\/uploads\/2024\/07\/image-61-768x576.png 768w, https:\/\/www.liberalglobe.com\/wp-content\/uploads\/2024\/07\/image-61.png 1208w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<p><strong>The fiscal cliff<\/strong><\/p>\n\n\n\n<p>Trump&#8217;s promises:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>for big tax cuts and no cuts to Social Security or Medicare.<\/li>\n\n\n\n<li>the implementation of a 10% universal tariff, which most economists agree would be inflationary.<\/li>\n\n\n\n<li>plans for mass immigration are expected to slow US growth.<\/li>\n\n\n\n<li>All this will simultaneously burden the stability of the dollar, although they do not give an opening to another currency to dethrone it.<\/li>\n<\/ul>\n\n\n\n<p>Dollar reserves would slide if the geopolitical environment continues to fragment. This also seems likely under the Trump administration.<\/p>\n\n\n\n<p>During his first term, Trump threatened to withdraw from NATO and pulled the US out of key agreements such as: <\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>the Iran nuclear deal,<\/li>\n\n\n\n<li>the Paris Climate Agreement and<\/li>\n\n\n\n<li>the Pacific Partnership.<\/li>\n<\/ul>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"1024\" src=\"https:\/\/www.liberalglobe.com\/wp-content\/uploads\/2024\/07\/image-62-1024x1024.png\" alt=\"\" class=\"wp-image-19346\" srcset=\"https:\/\/www.liberalglobe.com\/wp-content\/uploads\/2024\/07\/image-62-1024x1024.png 1024w, https:\/\/www.liberalglobe.com\/wp-content\/uploads\/2024\/07\/image-62-300x300.png 300w, https:\/\/www.liberalglobe.com\/wp-content\/uploads\/2024\/07\/image-62-150x150.png 150w, https:\/\/www.liberalglobe.com\/wp-content\/uploads\/2024\/07\/image-62-768x768.png 768w, https:\/\/www.liberalglobe.com\/wp-content\/uploads\/2024\/07\/image-62-1536x1536.png 1536w, https:\/\/www.liberalglobe.com\/wp-content\/uploads\/2024\/07\/image-62-800x800.png 800w, https:\/\/www.liberalglobe.com\/wp-content\/uploads\/2024\/07\/image-62.png 1972w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n<\/div>\n\n\n<p><em>Will the US remain a reliable partner?<\/em><\/p>\n\n\n\n<p>Trump has imposed sanctions more often than President Biden \u2013 a practice often cited as a key reason other countries seek to de-dollarize their reserves.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The US must abandon its \u201cmammoth deficits\u201d if it is to keep US debt levels manageable for decades to come. The over-indebted US economy&#8230;<\/p>\n","protected":false},"author":1,"featured_media":19344,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5,860],"tags":[1897,239,655,380],"class_list":["post-19343","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economic","category-fiscal-economics","tag-american-elections","tag-dollar","tag-donald-trump","tag-public-debt"],"_links":{"self":[{"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=\/wp\/v2\/posts\/19343","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=19343"}],"version-history":[{"count":1,"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=\/wp\/v2\/posts\/19343\/revisions"}],"predecessor-version":[{"id":19347,"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=\/wp\/v2\/posts\/19343\/revisions\/19347"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=\/wp\/v2\/media\/19344"}],"wp:attachment":[{"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=19343"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=19343"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=19343"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}