this post was submitted on 21 Apr 2025
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For decades, the U.S. financial system has been regarded as one of the most stable and powerful in the world. Now, there are fears that something unprecedented may be happening as a result of President Trump's tariffs: Investors everywhere may be losing their faith in the United States.

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[–] Dragomus@lemmy.world 3 points 2 days ago

It's still his style of thinking "a deal needs a winner and a loser".
Only the US will definitely be the loser as it goes bankrupt.

Problem is he disregards the rest of the world owning a piece of the US, from real estate to dollar value or gold reserves (which might get robbed by Trump as well if he raises the gold reserve's value, he will claim "our" gold is worth 3x now but we will only count the original value of your stored gold).

So as an option Trump can confiscate foreign held real estate in the US (communism, anyone?) and perhaps deny anyone the debt owed them, or tank the dollar value to introduce a new Trumpcurrency ... but that does not rebuild any of the lost trust and respect, the world will see the US forever as a derelict and creditless country which does not pay its debts. The now decimated amount of trade will be on the premise of pay first then we deliver.

Combine this with seriously reduced tax income, because the rich and companies still won't need to pay taxes, and the US will not have any income to actually warrant a positive growth on the economic balance. Which in effect pushes it in the same deep debt situation it is now in and most likely far beyond.

After he tanks the system, internationally things will NEVER be the same, no matter how much Trump thinks it will be.

Granted, as it is now the US is and has been living far beyond its means, and a good restructuring is needed to reduce the enormous debt.
But the way Trump and the whole political system want to do it is not helping at all. To get out of such a debt one needs to take a hard look at the biggest expenditures (defense and the wages of the top everywhere) and imbalances of income (taxes).