The greatest issue concerns the dollar

 


The new tariff regime is not reciprocal to anything, but instead is retaliatory in proportion to how big a surplus in goods trade a country happens to have with the US.

The greatest issue concerns the dollar. 

Relative to the rest of the world, US assets have boomed ever since the Global Financial Crisis and went into overdrive after the pandemic stimulus programs in 2020. 

At that point, America let the liquidity flow, and attracted massive flows from other countries into its stock market.

Apple market cap almost touched $4 trillion three months ago. Now it’s nearly back to $3 trillion. 

The growth in European holdings of US stocks has been breathtaking


It’s a classic example of what the hedge fund manager George Soros, mentor of US Treasury Secretary Scott Bessent, 

calls reflexivity, or the ability of the market to create its own reality.

John Authers Bloomberg 4 april 2025 at 07:00 CEST

https://www.bloomberg.com/opinion/newsletters/2025-04-04/tariffs-fallout-that-smashing-sound-is-piggy-banks-around-the-world






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