Trump’s dollar delusion: how trade war risks ending the US’s ‘exorbitant privilege’

Trump’s team flirts with weakening the dollar, threatening US influence, low borrowing costs and global stabilityMagical thinking is indispensable to understanding Team Trump’s economic policymaking. The White House often seems to believe two opposing policies can work together while one policy can do two or three contradictory things.A heavy dose of hocus pocus will be needed to make the administration’s dollar policy work in the interest of the United States, for it appears that they want to end the US dollar’s supremacy in global finance. Continue reading...