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95 sats \ 3 replies \ @Filiprogrammer 15 May \ parent \ on: The "Trade Deficit" is a Misnomer econ
trade surpluses are worse than trade deficits.

For the US, because there a trade deficit means they can export USD inflation.

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5 sats \ 2 replies \ @Undisciplined 15 May

That’s what it would mean for anyone, no?

The reason the US has been able to sustain a trade deficit is that there’s been so much dollar demand.

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68 sats \ 1 reply \ @Filiprogrammer 15 May
That’s what it would mean for anyone, no?

No, not every country can print the world reserve currency, to finance trade deficits.

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15 sats \ 0 replies \ @Solomonsatoshi 15 May

Even for the US it is ultimately a toxic death trap.

When the petrodollar loses its dominance as the global reserve currency.

This only happened to the British pound when the Suez canal crisis exposed the British as being militarily incapable of enforcing control of strategic shipping lanes.

Hormuz could be the death knell of the petrodollar.

Regardless the decline of the USD-'petrodollar' is already well advanced...with US government debt servicing exceeding military expenditure and no credible pathway to ever repaying the debt.

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