MACROECONOMICS

Triffin Paradox and What is Trump's Ultimate Goal?

US Trade Balance, USD Value, and Bond Yields: What is the Real Target?

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In the first half of last week, news about the new trade war, once again ignited by US President Trump, flooded the mass media. By the second half of the week, news about DOGE - the temporary agency established to manage government efficiency (led by Elon Musk) conducting an “audit” of US government spending. These two events prompted Viet Hustler to ask: Is Trump's Trade War and the reform of the US Government's financial situation closely linked?

In addition, the lesson from the 1985 Plaza Accord also highlighted the close connection between the US trade deficit and maintaining the influence of the USD - a theory known as the Triffin Paradox.

Therefore, this week's 7th article, Viet Hustler will dedicate to analyzing Trump's purpose in igniting the trade war from 2 perspectives:

  1. Triffin Paradox and

  2. US Government Debt and Spending Issues.

Disclaimer: The following article contains many subjective opinions of the author and is by no means investment advice!

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