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Liz's avatar
Mar 18Edited

We are in the Triffin Dilemma. Trump officials know this. US can’t make anything anymore because dollar is reserve currency, too high for manufacturing to be competitive. Being the global reserve currency means that the only major industries will end up being the financial industry and the military industry (to protect the reserve currency status). The Trillin Dilemma (I think I remember?) also predicted that the trade deficit will explode. All this has happened. But the stock market will not crash, it will only go up as income inequality becomes more acute and there is no where else (besides US govt debt) for the oligarchs to park their hoarded dollars --unfortunately.

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