4 ms·
Is this not what the current US administration seeks? You can't simultaneously be the reserve currency and hope to be a net exporter at the same time.
by gritspants 7mo ago
Is this not what the current US administration seeks? You can't simultaneously be the reserve currency and hope to be a net exporter at the same time.
- engineer_22 7mo agoPerpetual trade deficit is modern system of tribute.
- JumpCrisscross 7mo ago> Perpetual trade deficit is modern system of tribute Probably not. Equatorial Guinea, Palau and Kyrgyzstan run the largest current-account deficits as fractions of GDP [1]. (Current account counts goods and services.) [1] https://en.wikipedia.org/wiki/List_of_countries_by_current_account_balance https://en.wikipedia.org/wiki/List_of_countries_by_current_a...
- engineer_22 6mo agoResource extraction... High value infra projects in, low value unprocessed resource out. Edit: Palau is the exception, it's main industry is tourism. Wealthy westerners come and consume and leave. Palau doesn't produce anything so all that consumption must be imported. US current accounts deficit ~1 trillion annually, greater than your counterexamples' total combined economies. This should be a clue it's not the same mechanism of action.