What Trump’s ‘quarries’ hide, because the problem ‘all’ is called the dollar and what the role of a new ‘ Plaza Agreement’

On Saturday (1.2,2025) the words became works. The Trump government activated a first package of duties, with Canada, Mexico first targets and China second. The eurozone will have to wait a little longer. Behind the three goals of Saturday, however, one can easily identify four goals in a second distribution. Mexico is not about the Mexican economy as much as the euro area, China and a number of other economies that had moved their processing industry to that country that is ‘exporting’ to the USA, with very low tariffs and very low transport. To some extent much smaller this applies to Canada. The first reactions are certainly reflected in the stock markets – this is now Monday (3.2.225) expected to be more… impressive – but mainly in exchange rates. The dollar has skyrocketed in relation to the other strong currencies, with the euro having made a – expected – macrobuty with an obvious horizon one by one. Why is this happening? Obviously why the Trump government’s move was “read” and discounted by the financial markets with capital investors flocking to the dollar in order to “win” this great rise. This strong trend is double earned as at least for 2025-2026, according to the government’s economic orientation Trump, the refinancing of American debt and the (loan) coverage of the unprecedented deficit for 2025, predicts an increase in yields on American ten-year and 30-year bonds that Mr Bessend will issue to cover. The attractiveness of the dollar In other words, the dollar was, but it will become an even better ‘country’ in 2025 in which one should be, when considering his ‘savings’. And this is a ‘think’ that currently dominates the financial markets and causes a ‘bright’ cycle of self-supply of dollar aid. That is an obvious observation. And the question that arises is how is it possible that the Trump administration does not “understand”, that the imposition of duties is essentially cancelled as far as its objectives are concerned. Where? But the fact that the dollar becomes even more expensive, i.e. the parity of the currencies of the eligible exporters trying to strike becomes even more competitive (due to their devaluation of the dollar), thus reducing to a large extent the actual amount of damage from 25% of the new duties. The answer is obviously that the Trump administration – and above all Mr Bessent – does not ignore the contradiction of the effects of duties. Then why do they do it? The answer I think should be sought in reality and facts. That is to say, the Trump government is attempting to exploit the strongest competitive weapon of American power that is not the (forgotten) bomb … neutrons, but the “prime” of the dollar. Let us not forget that the… astronomical American debt which based on the current public deficit of the US budget “runs” at a rate of 6.5% – 7% of GDP, when it “expires” is re-paid with new debt. As a result, at the moment, about $10 trillion – according to official measurements – in American bonds is the key “exchange reserve” in the central banks of all countries. And on this basis these countries are printing their own currency. In other words, if one looks at the euro, the value behind it in the vaults of the ECB, in addition to a relatively small amount of gold contributed by the Member States of the ECB, corresponds to dollars. And this applies to all countries on the planet, with the countries of BRICS replacing (the more and faster they can) for two to three years as much American debt with natural gold each year… The American privilege This is the “prime” of the dollar, which De Gaulle effectively contested in the late 60s to arrive on August 15, 1971, to hear Richard Nixon put an end to the exchange of gold dollars (an ounce of gold – 35 dollars according to Bretton Woods) and to tell the… planet that the dollar is now his problem. As we know from economic history this ‘problem’, after the opening act of presenting the most efficient and safe investment product like this, on the planet, in 1981 by Paul Volker (interest rate increase of 18%), i.e. long-term American bonds, obliged 3 – 4 years later, the then monetary strong of the planet, to the historical agreement at Plaza (1985). Perhaps we should pay more attention to the so-called Mr. Bessent (Trump administration’s sub-residentship), instead of the “tariff” of the last few days. Mr. Bessent is constantly returning to his talks of the Plaza Agreement (1985), arguing that a monetary “alignment” as it was then… Yes, then the yen and the mark were “paid” at the same time, changing the dollar – that is, the American debt, beyond the dollar – to “the problem” of the entire planet. Can Mr. Trump and Mr. Bessed carry the problem again today, namely the star-sized American debt to the … planet? Perhaps this is a question whose answer should concern us more than the noisy ‘tariff’ of recent days.