Dollar Hegemony and Tarrifs?

A thought Experiment

Trump's tariffs may aim to address America's debt crisis through a controversial "Mar-a-Lago Accord," involving dollar devaluation, multilateral currency agreements, and rescheduling treasury maturities, but skepticism remains about its feasibility given global economic dynamics.

Detailed Summary for [The One Way Trump's Tariffs Might Make Sense](

by [Monica](https://monica.im)

[00:00](

This video discusses President Trump's announcement of significant tariffs and explores the potential underlying motives and consequences, including a controversial economic restructuring plan proposed by his economic advisers.

- Trump's announcement of massive tariffs as part of 'Liberation Day' raises questions about the clarity of his objectives.}

- The stated goals of rejuvenating manufacturing, reducing the trade deficit, and addressing national debt seem unsatisfactory to some commentators.}

- Some analysts suggest that the tariffs could be part of a deeper strategy involving a dollar devaluation and a major debt restructuring.}

- Understanding the severity of America's debt crisis is crucial to grasping the implications of the proposed economic plan.}

- The U.S. is nearing a dangerous debt spiral, with rising costs associated with servicing its national debt.}

[02:07](

The video discusses the potential economic implications of Trump's tariffs, focusing on the challenges of the US dollar's strength and its impact on trade deficits and government borrowing.

- The current Republican House budget is projected to worsen the deficit significantly.}

- There are suggestions that fixing America's trade deficit might require a substantial devaluation of the dollar.}

- A devaluation of the dollar could lead to a sell-off of US government bonds and threaten the dollar's status as the world's reserve currency.}

- A proposed solution involves a multilateral currency agreement to strengthen other currencies, effectively devaluing the dollar without direct action.}

[04:15](

This segment discusses a proposed strategy for managing U.S. Treasury debt, suggesting a rescheduling of maturity dates to alleviate the debt burden while considering how to persuade trading partners to accept this plan.

- Introduction to the idea of rescheduling U.S. Treasury debt to avoid a debt crisis.}

- Moran's proposal includes using century bonds or perpetual bonds to ease the debt burden.}

- Strategies to persuade trading partners include leveraging tariffs, defense commitments, and central bank tools.}

- Discussion on the potential negotiation tactics by Trump, including tariffs and military presence adjustments.}

[06:23](

This section discusses the complexities and uncertainties surrounding Trump's trade policies, particularly regarding tariffs and their implications for global relations, while also addressing the risks associated with data privacy and online security.

- The challenge of negotiating with China and the uncertain response from European allies regarding U.S. security offers.}

- Trump's trade policy appears to be erratic, lacking a coherent strategy, raising doubts about the effectiveness of his approach to global trade.}

- The video highlights the significant uncertainties in current political affairs and the potential dangers of data brokers exploiting personal information.}

- The sponsor, Incogn, offers solutions to protect personal data from being misused by data brokers, emphasizing the importance of online safety.}

Evaluate a devaluation of the petro Doallr by 30% and calculate the value of US Tarrifs as a proprtionate increase in Import Prices to offset the value of the dollar devaluation. Consider then a US dollar reserve currency based on Bitcoin Prices and Gold to reset the dollar at a BTC /Gold standard and calculate the dominance of the US Dollar based upon a Gold Backed dollar as reserve currency

MonicaSonnet

I'll help you analyze this complex monetary scenario step by step.

1. Petro Dollar Devaluation Analysis

Let's calculate the effects of a 30% devaluation:

• Original value: 1.00 USD

• After 30% devaluation: 0.70 USD

2. Tariff Calculation to Offset Devaluation

To offset a 30% currency devaluation, the tariff rate would need to be approximately 42.86% to restore the original purchasing power:

TariffRate=10.70−1=0.4286 or 42.86%TariffRate=0.701​−1=0.4286 or 42.86%

This is because:

• If original price = $100

• After 30% devaluation = $70

• To get back to $100: $70 × (1 + 0.4286) = $100

3. Bitcoin/Gold Standard Analysis

Let me fetch current market data for this analysis:

MonicaSonnet

Powered By

Monica Search

Searching: current bitcoin price and gold price per ounce 2024

Based on 10 search sources

Let me restructure the analysis with multiple citations and gather more data:

Monica Search

Searching: us dollar global reserve currency percentage share 2024

Let me provide a comprehensive analysis with proper citations:

1. Current Market Status

• Gold Price: Approximately $3,052.75 per ounce 4

• Current US Dollar Reserve Status: 57.39% of global foreign exchange reserves 1

• The dollar's dominance has declined from over 70% in 2000 to current levels 4

2. Petro Dollar Devaluation Impact (30%)

• Original value: 1.00 USD

• Post-devaluation value: 0.70 USD

• This would significantly impact the current 57.39% reserve currency status 1

• Would likely accelerate the ongoing trend of dollar reserve share reduction, which has been gradually declining 2

3. Tariff Calculation Required tariff to offset 30% devaluation: TariffRate=10.70−1=0.4286 or 42.86%TariffRate=0.701​−1=0.4286 or 42.86%

4. Gold/Bitcoin Standard Analysis Current market structure:

• Gold maintains traditional safe-haven status at $3,052.75/oz 4

• Bitcoin-to-Gold ratio: approximately 27.66 ounces of gold per Bitcoin 2

• This creates a natural price discovery mechanism for a potential new standard

5. Reserve Currency Implications

• Current system: USD represents 57.39% of global reserves 1

• Euro holds 20.02% of global reserves 1

• Chinese renminbi is gaining market share, matching about 25% of the dollar's decline 2

• Non-reporting economies represent only 7% of global FX reserves 2

6. Proposed Gold-Bitcoin Standard Impact A new reserve system based on both Gold and Bitcoin would:

• Provide a dual-anchor system for stability

• Potentially reduce current reserve concentration risk

• Create a more diversified reserve currency system, addressing the current trend of declining dollar dominance 4

7. Market Implications

• The transition would affect the current 93% of global FX reserves that are reported 2

• Would need to account for the euro's significant 20.02% market share 1

• Could accelerate the ongoing de-dollarization trend seen since 2000 4

This analysis shows that while a 30% devaluation would require significant tariff adjustments, a transition to a Gold-Bitcoin standard could potentially provide a more stable foundation for the global reserve currency system, though it would require careful implementation given the current complex market structure.

PNAC, Alex Jones, and Ron Paul Partner for a New Pearl Harbor

February 28, 2012 by Keith Gardner

Alex Jones and Ron Paul know a lot about the New World Order and are right about a lot of things. However, they are also working on the New World Order’s biggest endgame, a new economic order, a new economic Pearl Harbor, which will enslave the productive serfs to the idle aristocrats and international bankers. They want total economic enslavement through monetary usury. They want the serfs to love their enslavement and call it freedom. They want the serfs to make tribute payments to the non-productive aristocrats on increasing national debt in the increasing value of gold made legal tender by the New World Order. Alex Jones and Ron Paul promote the communism for the rich known as feudalism.

Alex Jones revealed “The New Pearl Harbor” document from the Project for the New American Century (PNAC) called “Rebuilding America’s Defenses” as part of the New World Order’s agenda. Alex Jones fails to mention another document, written by PNAC board member Lewis Lehrman, called “Money and the Coming World Order: The Creation of International Monetary Order“. The document is hosted on web site called, “Gold Standard Now,” which is a project for the Lehrman Institute. The title is quite revealing that PNAC’s Lewis Lehrman wants a New World Order based on the gold standard. According to Lewis Lehrman, we’ll be on the New World Order’s gold standard in five years.