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Trey2d ago
The Triffin Dilemma explains why the U.S. has run a trade deficit for decades — and why fixing it could trigger the next global financial crisis. Every country needs dollars to trade, which keeps the dollar strong. Strong dollar means cheap imports and expensive exports. The trade deficit is the structural cost of running the world's reserve currency. Trump's tariffs aim to reverse this — close the deficit, bring factories home, and rebuild American industry. But eliminating the trade deficit cuts off the dollars the global economy runs on. Fewer dollars flowing out means a liquidity squeeze — credit crunches, collapsing trade finance, and cascading defaults on dollar-denominated debt worldwide. The likely response is more money printing, bigger deficits, and stimulus — the same COVID playbook. Either the U.S. keeps running deficits to supply the world with dollars, or it fixes the deficit and prints more to prevent a meltdown. Both paths lead to more dollar creation. https://firebtc.io/p/trump-be-triffin-bro
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