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From DeepSeek to DeepTradeWar

There's always something going on and politicians are making sure we never get bored. So let's move on from the horrors of 'DeepSeek' (nobody cares anymore) to the subject of trade wars and US customs policy. I would just like to add to the general noise the central idea that permanent tariffs lead to a reduction in the international division of labor and thus reduce the productivity of the respective economies.

This will put further pressure on fiat credit and, from the perspective of Bitcoin, should lead to a short-term rise in volatility, but the speed of adaptation will increase significantly in the course of the expected lowering of credit hurdles, government intervention with the printing press and yield curve control to stabilize deficit-ridden national budgets and social programs.

#usa #trump #tariffs #eu #usd #bitcoin #nostr #economy #plebchain

patrick '💅' el Don 11mo ago

For the sake of argument less assume the tariff is voluntarily agreed upon between the two parties.

Do you think tariffs are a negative if there is a decrease in productivity levels but the host country becomes less dependent on other nations to produce essential goods?

The cost of tariffs is a less efficient allocation of global resources but the benefit is reducing a nations dependence and sovereignty levels on other powerful actors.

I think one has to judge it on a case-by-case basis to evaluate the value a nation should place on productivity over independence given the nations unique circumstances.

What are your thoughts?

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Discussion

Ghost of Truth 11mo ago

I can answer that quite well with the Austrian school. every reduction in the division of labor, especially at the international level, leads to a reduction in labor productivity and the efficiency of capital use. We are losing established patterns of specialization, which are gradually being lost. Mercantilism has no winners in the long term. But in a geopolitical context, it is important to point out that Europeans are the world champions of hidden trade barriers. What is happening here is a payback that is long overdue