If america can't run its economy with twin deficits, then unlikely the UK can.
The idea now seems to be in the words of trump or pretty much his words."We don't want your money china".
Why, because china has been reinvesting its profits into american financial assets. This has plumped up their value, which has been great for rich americans and chinese, but no good for the economy, or the people who've seen their wages stagnate.
Instead, what Scott Bessent wants and trump too is for the money to be invested in real assets, for example, factories.
Seems america wants to make its way in the world and not live on borrowed money anymore....
As to the budget deficit, again a whole new idea coming in at the same time as others, and at a time of great difficulty for the last step in the life of this empire!
Given the need to refinance a third of the debt in the course of this year, the immediate pressing need is to reduce interest rates. And that's why trump has been putting such pressure on powell. Never mind the effect on inflation, already exacerbated by tariffs.
He's been pressing europe to pay their way for their own defense, and he's walking away from ukraine to cut wartime expenditure.
I ve not heard of any pressure on congress to stop spending money like there's no tomorrow, but if they don't, there won't be.
And another major idea to deal with the debt in what's called financial repression. This is where inflation is greater than interest rates, and you float the dept away over the course of several years.
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