Can the US Rein In the Eurodollar? If Not, What Should Trump Do?
Can the US Rein In the Eurodollar? If Not, What Should Trump Do?
Source: Armstrong Economics
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DW NOTE
The eurodollar system exists because Washington spent seventy years running deficits someone had to finance. Now Trump wants control over a market that formed specifically to escape Fed jurisdiction — good luck repatriating $15 trillion in offshore dollar claims while running an $1.8 trillion annual deficit and raising rates into a supply shock. The dollar's reserve status was always a Triffin trap; trying to "rein in" eurodollars just makes the exit faster.