Trump’s Tariffs May Still Pop History’s Greatest Credit Bubble
Posted May 13, 2025
Over the past 55 years since Dollars ceased to be backed by Gold, the global economy has inflated into the largest Credit Bubble in history – a Bubble made possible by The Dollar Standard and driven by enormous US trade deficits.
Now, that Bubble is in danger of imploding.
The new Macro Watch video explains why President Trump’s proposed trade policies – especially his plan to eliminate the US Current Account deficit through aggressive tariffs and Dollar devaluation – would sever the primary source of Global Liquidity that has kept the global economy expanding for decades.
If that happens, the Global Everything Bubble would burst.
This video shows:
- Why the international monetary system, which I call The Dollar Standard, is inherently flawed
- How the US Current Account deficit became the engine of global economic growth
- How decades of trade deficits pumped trillions of Dollars into the world, transforming the global economy and fueling booms everywhere from China to Wall Street
- Why Trump’s plan to eliminate those deficits would trigger soaring interest rates, crashing asset prices, and a global financial crisis
- What would happen if capital inflows into the US stopped altogether
- Why this could lead to a new Global Depression – and how much wealth destruction might occur before the US is forced to reverse course
I first warned of these dangers in The Dollar Crisis more than 20 years ago. The imbalances I described then have become far more extreme today – and therefore, far more dangerous.
The global economy has never been more vulnerable. This video explains why.
Watch “Trump’s Tariffs May Still Pop History’s Greatest Credit Bubble” now
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