ChinaTalk Podcast and Newsletter

i'm so happy for them

Trump again with the @leopoldasch shoutout

Trump’s VP pick JD Vance: A deep dive into the macroeconomic implications his desire to weaken the dollar ?? As far as economic policy, Vance has read Matt Klein’s book and is in favor of weakening the US dollar. Vance argues that reserve currency status forces the US to cater to the financial interests of foreigners. How to make US assets less attractive internationally? ? Tax foreign purchases of US assets ? Arbitrarily enforce regulations, use sanctions, or confiscate wealth. ? Pressure the Fed to print dollars and purchase foreign assets In the words of Matt Klein, “The dollar is not strong, it’s expensive. It’s overpriced.” Thus, cheapening the exchange rate should make US exports more competitive. Vance on industrial policy: ? Supported the CHIPS Act, framing it as reducing dependence on Taiwan ? Biased in favor of manufacturing-focused growth ? Willing to invest in strategic sectors, diverging from GOP orthodoxy, according to @ArnabDatta321 Is this a sign that Vance will support the continuation of Biden's Tariffs? Maybe not. @M_C_Klein says, “Many arguments for tariffs don’t make sense in a world of floating exchange rates.” Vance’s psychology as a Trump apprentice: ? Clearly smart, but acting like a Tucker Carlson guest for political gain ? Strategic in his relationship with Trump, not asking for favors or endorsements during his Senate Campaign ? Potential for power struggles with his mentor If and when Vance is sitting in the White House and thinks “This is my time to spend some political capital and push something with Trump,” I wonder if Trump will end up seeing his own mortality and feel threatened.