This seems incoherent to me. Foreign direct investment is already very significant in our economy. I have thought for a while that the US should have a sovereign wealth fund buy foreign government debt, which would supply US currency to the world without needing a trade deficit, thus weakening the dollar and strengthening foreign currencies, which would reduce the trade deficit and possibly increase American manufacturing. It seems like a smarter way to do it than tariffs, anyway, and unlike tariffs, I think it would not be perceived as hostile by other countries. But that would be the opposite of what Bessent is saying as far as I can tell.

[–] whiskers165@hexbear.net 24 points 4 months ago

The American establishment, particularly the right wing, they're not there because they are the smartest or best at what they do ...

[–] sodium_nitride@hexbear.net 18 points 4 months ago

The Americans have had many options for weakening the dollar while simultaneously quelling domestic dissent. Aka, turn on the money printer and forgive various debts or lower their interest rates (student loans, credit card loans, even mortgages would be big ones). They could even literally just force powell to lower the fed rates (what would he do if ICE showed up at this office?).

All of these things would be percieved as even less hostile than the Americans buying up foreign debt, and would directly contribute to creating the kind of healthy and financially stable workforce that would be needed for re-industrialization.

Thankfully, or not so thankfully, the American ruling class has become incapable of compromise, and intends on giving us a show.