For decades, the U.S. financial system has been regarded as one of the most stable and powerful in the world. Now, there are fears that something unprecedented may be happening as a result of President Trump’s tariffs: Investors everywhere may be losing their faith in the United States.
Generally speaking, the problem when you don’t repay your debt is not that other countries invade you, but that you don’t get any new loans.
If America can get a new currency, default on her debt, and at the same time manage a balanced budget, all is good. Otherwise, who’s going to come up with the loans required?
Who has Trump looked to in the past to bail him out when traditional lenders no longer would?