Comprehensive analysis of the various knock on effects of the Trumpenators witless attempt to "fix" persistent trade deficits through the unilateral application of tariffs.  It's a very one dimensional strategy which doesn't take into account the effects on the Bond Market or FOREX trading, or the potential for lockup in liquidity due to the outsize value of the basis trade.

Although the recent reversal of the tariff policy by His Trumpness have calmed the stock market, the damage done to the value of USTs as a "safe asset" haven in times of economic instability isn't fixed so easily.  The countries and institutions holding large amounts of USTs will continue to dump them quietly while they diversify out and find a new way to balance their risk.  This will prove to be problematic for the FSoA when it needs to finance the next budget.

For now we sit in a lull, a calm between storms waiting for the next shock to the system.  Coming soon to a theater near you.

Trump Has Exposed the Fragility of the Global Dollar System

https://jacobin.com/2025/04/trump-global-dollar-system-tariffs

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