Tariffs: The End Of Easy Money?
Posted July 31, 2025
For more than forty years, the United States’ massive Current Account Deficits have been the primary engine of global economic growth. They have fueled an extraordinary expansion of global credit and lifted living standards and asset prices around the world.
Now, President Trump says he’s going to eliminate those deficits — and he has begun negotiating trade deals designed to do exactly that.
If he succeeds, the flow of foreign capital into the United States will shrink dramatically. That could mean higher interest rates, weaker stock markets, and a far more difficult environment for investors. But is it really possible to close the gap without triggering severe consequences? And if the gap does close, how will the global economy and financial markets respond?
In the latest Macro Watch video, we examine:
- The real numbers behind the US Current Account Deficit — and how Trump’s trade deals could change them.
- Why shrinking the Current Account Deficit means shrinking Capital Inflows — and why that matters for bond yields, stock prices, and economic growth.
- How reduced foreign buying of US assets could force the Federal Reserve back into large-scale money creation — and what that might mean for inflation.
- Why the next few years could look very different from the last four decades — for the U.S., for global markets, and for your portfolio.
The implications are vast, and the timing matters. Investors who understand what’s coming will have an enormous advantage over those who don’t.
Subscribers to Macro Watch can CLICK HERE, log in, and watch this video now.
The video is 19 minutes long and offers 54 charts and slides that can be downloaded.
If you haven’t yet subscribed, now is the time. With global trade relationships shifting, capital flows at risk, and the potential for higher inflation and interest rates on the horizon, the decisions you make over the next few months could define your returns for years to come.
Join Macro Watch today and get immediate access to this new video, one new video approximately every two weeks, and over 100 hours of in-depth analysis on the forces driving the global economy and financial markets from the Macro Watch video archive.
For a 50% subscription discount, click on the link above and, when prompted, use the discount coupon code: Easy
