Trump’s Trade War Poses Dollar Intervention Question

The transcript discusses the potential for unilateral currency intervention by the US, highlighting historical precedents like the Plaza and Louvre Accords. It explores the concept of 'capital wars,' where the US might tax capital inflows to weaken the dollar, and the challenges of such interventions. The impact of trade wars on the dollar and manufacturing sector is examined, suggesting that taxing foreign Treasury holders could be a strategic move. The possibility of direct market intervention by the US is also considered, though its effectiveness is questioned.

What is the significance of taxing foreign ownership of Treasurys as mentioned in the text?

What are the implications of a capital war as opposed to a trade war?