A key non-financial point has to do with the defense hypothesis. The US is apparently not in a position to provide the defense capacities that Trump wants to charge for with tariffs. We can’t defend Europe and Taiwan simultaneously. And if the foundation of such defense is payment not principle, who would trust Trump now? We need our allies, not the other way around. It seems very unlikely they will be willing to play the suckers now. They will go their own way.
John, great article. This is the first understandable version of a plan I have heard. Goodness knows POTUS has not delivered on. My question to you (or to any of your readers that would like to chime in) is do any of these Largo Accords have any resemblance to the "Project 2025" that became a news item before the election? If not, who do you think are the people associated with this Largo Accord and what are their backgrounds. Thanks
A key non-financial point has to do with the defense hypothesis. The US is apparently not in a position to provide the defense capacities that Trump wants to charge for with tariffs. We can’t defend Europe and Taiwan simultaneously. And if the foundation of such defense is payment not principle, who would trust Trump now? We need our allies, not the other way around. It seems very unlikely they will be willing to play the suckers now. They will go their own way.
The expression I believe is "eat your cake and have it too". Makes more sense, as a sequence. Apologies for didacticism.
John, great article. This is the first understandable version of a plan I have heard. Goodness knows POTUS has not delivered on. My question to you (or to any of your readers that would like to chime in) is do any of these Largo Accords have any resemblance to the "Project 2025" that became a news item before the election? If not, who do you think are the people associated with this Largo Accord and what are their backgrounds. Thanks
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A great article. The market and economic risks of this “accord” are significantly greater than the current consensus.