President Trump Needs to Turn His Attention to Our Problems
Do you remember when we were told that the “Reagan deficit” was going to destroy the economy? In the past two and one-third months ending October 15 the US national debt increased by $1 trillion. That is five times greater in a mere 71 days than David Stockman’s exaggerated “$200 billion annual deficits as far as the eye can see” that he falsely attributed to President Reagan’s tax rate reduction.
In light of the $38 trillion US national debt, why is Washington financing Israel’s wars and the war against Russia in Ukraine? The weaponization of the US dollar with sanctions and asset freezes and confiscations has resulted in a decline in the percentage of international transactions accounted for by US dollars. Similarly, the dollar’s use as foreign central bank reserves is declining. If the dollar loses its role as reserve currency, the interest rate needed to finance the massive US national debt would rise precipitously and absorb the entire revenues of the government.
American power depends far more importantly on the dollar’s role as reserve currency than it does on the War Department budget or winning wars for Israel and Ukraine. Trump’s war on Putin is driving up oil and other prices that are main drivers of inflation. Trump’s war on China might deprive the US economy of rare earths, thus halting production of essentials. It seems to me that the cost of American hegemony is going to be America’s destruction.
The gold and silver markets have already seriously depreciated the value of paper fiat currencies and their debt instruments. China is in the process of substituting gold for US Treasuries as central bank reserves. As China is a huge holder of US debt, the adverse consequence for the dollar is obvious.
The US economy faces massive unemployment from AI and robotics. State and local governments have large bills from the subsidies they have institutionalized for immigrant-invaders. Inflation, officially understated, is eating away at the living standards of Americans. A very dark storm is gathering, and our President is pretending that he owns the world.
https://www.paulcraigroberts.org/2025/10/27/president-trump-needs-to-turn-attention-to-our-problems/