{"id":2211,"date":"2024-07-18T13:24:44","date_gmt":"2024-07-18T13:24:44","guid":{"rendered":"https:\/\/trusteconomics.eu\/?p=2211"},"modified":"2024-07-18T13:24:44","modified_gmt":"2024-07-18T13:24:44","slug":"trump-presidency-2-0-the-dollar-will-be-sacrificed-to-deal-with-the-huge-public-debt","status":"publish","type":"post","link":"https:\/\/trusteconomics.eu\/index.php\/2024\/07\/18\/trump-presidency-2-0-the-dollar-will-be-sacrificed-to-deal-with-the-huge-public-debt\/","title":{"rendered":"Trump Presidency 2.0: The Dollar will be sacrificed to deal with the huge Public Debt"},"content":{"rendered":"\r\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>\r\n\r\n\r\n\r\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>\r\n\r\n\r\n\r\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>\r\n\r\n\r\n\r\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" class=\"wp-image-19345\" src=\"https:\/\/www.liberalglobe.com\/wp-content\/uploads\/2024\/07\/image-61-1024x768.png\" alt=\"\" \/><\/figure>\r\n\r\n\r\n\r\n<p>&nbsp;<\/p>\r\n\r\n\r\n\r\n<p><strong>The fiscal cliff<\/strong><\/p>\r\n\r\n\r\n\r\n<p>Trump&#8217;s promises:<\/p>\r\n\r\n\r\n\r\n<ul class=\"wp-block-list\">\r\n<li>for big tax cuts and no cuts to Social Security or Medicare.<\/li>\r\n\r\n\r\n\r\n<li>the implementation of a 10% universal tariff, which most economists agree would be inflationary.<\/li>\r\n\r\n\r\n\r\n<li>plans for mass immigration are expected to slow US growth.<\/li>\r\n\r\n\r\n\r\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>\r\n<\/ul>\r\n\r\n\r\n\r\n<p>Dollar reserves would slide if the geopolitical environment continues to fragment. This also seems likely under the Trump administration.<\/p>\r\n\r\n\r\n\r\n<p>During his first term, Trump threatened to withdraw from NATO and pulled the US out of key agreements such as:<\/p>\r\n\r\n\r\n\r\n<ul class=\"wp-block-list\">\r\n<li>the Iran nuclear deal,<\/li>\r\n\r\n\r\n\r\n<li>the Paris Climate Agreement and<\/li>\r\n\r\n\r\n\r\n<li>the Pacific Partnership.<\/li>\r\n<\/ul>\r\n\r\n\r\n<div class=\"wp-block-image\">\r\n<figure class=\"aligncenter size-large\"><img decoding=\"async\" class=\"wp-image-19346\" src=\"https:\/\/www.liberalglobe.com\/wp-content\/uploads\/2024\/07\/image-62-1024x1024.png\" alt=\"\" \/><\/figure>\r\n<\/div>\r\n\r\n\r\n<p><em>Will the US remain a reliable partner?<\/em><\/p>\r\n\r\n\r\n\r\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>\r\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 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 &hellip; <\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[105,59,106],"tags":[83,640,121,141],"class_list":["post-2211","post","type-post","status-publish","format-standard","hentry","category-developed-economies","category-proposed-fiscal-policies","category-us","tag-dollar","tag-donald-trump","tag-public-debt","tag-usa"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/trusteconomics.eu\/index.php\/wp-json\/wp\/v2\/posts\/2211","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/trusteconomics.eu\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/trusteconomics.eu\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/trusteconomics.eu\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/trusteconomics.eu\/index.php\/wp-json\/wp\/v2\/comments?post=2211"}],"version-history":[{"count":2,"href":"https:\/\/trusteconomics.eu\/index.php\/wp-json\/wp\/v2\/posts\/2211\/revisions"}],"predecessor-version":[{"id":2220,"href":"https:\/\/trusteconomics.eu\/index.php\/wp-json\/wp\/v2\/posts\/2211\/revisions\/2220"}],"wp:attachment":[{"href":"https:\/\/trusteconomics.eu\/index.php\/wp-json\/wp\/v2\/media?parent=2211"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/trusteconomics.eu\/index.php\/wp-json\/wp\/v2\/categories?post=2211"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/trusteconomics.eu\/index.php\/wp-json\/wp\/v2\/tags?post=2211"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}