Great recommendation with Varoufakis, one of my first posts (now deleted) was about Technofeudalism. His explainers on world events since publishing that book have kept me sane through the white noise of US news, especially most recently on Trump and his intended strategy with tariffs.
1. Trump and his strategy re: tariffs should not be underestimated contrary to what his centrist critics say
2. Trump plans to use the tariffs as a bargaining chip alongside U.S. security assurances to shock countries and their central banks into reducing domestic interest rates to keep their goods priced competitively. In effect paying for the tariffs placed on them through a weaker currency.
3. Trump is betting it will only be a matter of time before this leads countries to the negotiating table. He will then use the two main bargaining chips to force them to appreciate their domestic currency while holding onto their long term dollar assets.
4. One of those demands will be for countries to import US goods. He would then be able to make good on his promise to voters to near shore manufacturing though he risks alienating other parties, such as financiers and realtors.
Thanks for the detailed explanation - I wouldn’t be surprised if there’s indeed a well-developed strategy here but I’m skeptical of his ability to overcome finance capital’s general disinclination toward reshoring manufacturing.
(The other problem with that is the lack of skilled labour, which would require a generation to replenish).
Trump might try to shock, but China won't be in awe anymore during his second term. They have accumulate enough Chinese AI expert that were educated in the States but couldn't get a H1B visa to stay.
Great recommendation with Varoufakis, one of my first posts (now deleted) was about Technofeudalism. His explainers on world events since publishing that book have kept me sane through the white noise of US news, especially most recently on Trump and his intended strategy with tariffs.
I think it'll be seen as an increasingly important book as time goes on, especially as rates of automation increase.
Haven't seen his commentary on tariffs - what's his take?
Varoufakis says:
1. Trump and his strategy re: tariffs should not be underestimated contrary to what his centrist critics say
2. Trump plans to use the tariffs as a bargaining chip alongside U.S. security assurances to shock countries and their central banks into reducing domestic interest rates to keep their goods priced competitively. In effect paying for the tariffs placed on them through a weaker currency.
3. Trump is betting it will only be a matter of time before this leads countries to the negotiating table. He will then use the two main bargaining chips to force them to appreciate their domestic currency while holding onto their long term dollar assets.
4. One of those demands will be for countries to import US goods. He would then be able to make good on his promise to voters to near shore manufacturing though he risks alienating other parties, such as financiers and realtors.
Thanks for the detailed explanation - I wouldn’t be surprised if there’s indeed a well-developed strategy here but I’m skeptical of his ability to overcome finance capital’s general disinclination toward reshoring manufacturing.
(The other problem with that is the lack of skilled labour, which would require a generation to replenish).
Pretty much. But I think to V’s point, the circumstances would be the same for any other President going for this strategy.
Trump might try to shock, but China won't be in awe anymore during his second term. They have accumulate enough Chinese AI expert that were educated in the States but couldn't get a H1B visa to stay.
Counterpoint: the Deepseek team was 100% indigenous.
Sorry, I didn’t read up on their bios before the comment.