A ‘Trump Deal’? Juggling War, ‘Easy War’ and Negotiation
The key MAGA issue is not foreign policy, but how to structurally re-balance an economic paradigm in danger of an extinction event.
Trump clearly is in the midst of an existential conflict. He has a landslide mandate. But is ringed by a resolute domestic enemy front in the form of an ‘industrial concern’ infused with Deep State ideology, centred primarily on preserving U.S. global power (rather than on mending of the economy).
The key MAGA issue however is not foreign policy, but how to structurally re-balance an economic paradigm in danger of an extinction event. Trump has always been clear that this forms his primordial goal. His coalition of supporters are fixed on the need to revive America’s industrial base, so as to provide reasonably well-paid jobs to the MAGA corps.
Trump may for now have a mandate, but extreme danger lurks – not just the Deep State and the Israeli lobby. The Yellen debt bomb is the more existential threat. It threatens Trump’s support in Congress, because the bomb is set to explode shortly before the 2026 midterms. New tariff revenues, DOGE savings, and even the upcoming Gulf shake-down are all centred on getting some sort of fiscal order in place, so that $9 trillion plus of short-term debt – maturing imminently – can be rolled over to the longer term without resort to eye-watering interest rates. It is Yellen-Democrat’s little trip wire for the Trump agenda.
So far, the general context seems plain enough. Yet, on the minutiae of how exactly to re-balance the economy; how to manage the ‘debt bomb’; and how far DOGE should go with its cuts, divisions in Trump’s team are present. In fact, the tariff war and the China tussle bring into contention a fresh phalanx of opposition: i.e. those (some on Wall Street, oligarchs, etc.) who have prospered mightily from the golden era of free-flowing, seemingly limitless, money-creation; those who were enriched, precisely by the policies that have made America subservient to the looming American ‘debt knell’.
Yet to make matters more complex, two of the key components to Trump’s mooted ‘re-balancing’ and debt ‘solution’ cannot be whispered, let alone said aloud: One reason is that it involves deliberately devaluing ‘the dollar in your pocket’. And secondly, many more Americans are going to lose their jobs.
That is not exactly a popular ‘sell’. Which is probably why the ‘re-balance’ has not been well explained to the public.
Trump launched the Liberation ‘Tariff Shock’ seemingly minded to crash-start a restructuring of international trade relations – as the first step towards a general re-alignment of major currency values.
China however, wasn’t buying into the tariff and trade restrictions ‘stuff’, and matters quickly escalated. It looked for a moment as if the Trump ‘Coalition’ might fracture under the pressure of the concomitant crisis in the U.S. bond market to the tariff fracas that shook confidence.
The Coalition, in fact, held; markets subsided, but then the Coalition fractured ove
Article from LewRockwell
LewRockwell.com is a libertarian website that publishes articles, essays, and blog posts advocating for minimal government, free markets, and individual liberty. The site was founded by Lew Rockwell, an American libertarian political commentator, activist, and former congressional staffer. The website often features content that is critical of mainstream politics, state intervention, and foreign policy, among other topics. It is a platform frequently used to disseminate Austrian economics, a school of economic thought that is popular among some libertarians.
