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Cake day: January 25th, 2025

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  • Trump’s plan involves using tariffs to pressure foreign central banks to lower interest rates, thereby depreciating their currencies relative to the dollar. This would offset the price increases caused by tariffs on U.S. consumers.

    Nothing about this string of connections makes any sense. Why would they lower interest rates, why would their currency depreciate?

    Other countries are just going to form trade partnerships with each other and avoid the US. There will be a new strengthening global economy that skips the US entirely.

    It’s Brexit all over again, but instead of the UK suffering from leaving the EU, it’s the US suffering from leaving the global economy. At some point the US will have to come crawling back just for deals worse than it had in the first place.

    Varoufakis’ reasoning is fully consistent with the Trump/Musk world of drug-induced delusion.