*Special Note: This is the Economic Reset

Housekeeping: Good afternoon. This audio note builds on themes discussed here before. Podcast: The Economic Reset UnderwayDeglobalization, trade deficit reduction, swapping economic engines, multipolarity versus a global reserve currency, the death of Fiat as a consequence of the death of trust between nations et cetera.Considering the world is at a crossroads right now digesting trade restraints protectionism and mercantilism emergent it might be a good time to tie all this together contextually and give some semblance of reason to what the United States is trying to do now. We believe that for various converging reasons the US must abandon; its service economy mindset, its ability to borrow from foreign lenders, and its reliance on strong monetary policy to help prop up inferior manufacturing and economic productivity. It's not the first time we've done what we're doing. There are multiple cycles converging right now. We must go from a services economy to a manufacturing economy— why that has to happen is touched on in this podcast. Suffice to say there are multiple reasons. Multiple reasons for globalization going away, mercantilism rising along with nationalism and a deeply reawakened need to become self reliant. Hopefully this touches on some of those topics asa precursor ot a longer essay being worked on now . And there are some reading bonuses at bottom.II. The Return to ManufacturingA. Where We Are in the Cycle* Similar to post-WWII manufacturing dominance* Different from globalization phase (1950s–2000s)* The shift is driven by necessity, not ideologyB. From Globalization to De-Globalization* Globalization = business expansion overseas* Globalism = ideology that ignores self-reliance* The cycle is not just economic, but trust-basedIII. The Collapse of Global TrustA. The Key Word: Trust* Trust enables globalization; mistrust causes retreatB. Key Events That Destroyed Trust* Ukraine-Russia War* Accelerated European mistrust of Russia* Global mistrust of U.S. monetary custodianship* The Great Financial Crisis* Mistrust in U.S. as a financial steward* China and others began reassessing U.S. stability* Clinton-Era Policy Foundations* Seeds of mistrust were planted earlier but matured post-2008IV. The End of the Credit EraA. The Breakdown of the U.S. Credit Model* U.S. used credit (bond issuance) to finance trade deficits* Foreign nations no longer willing to buy U.S. bondsB. Moving to Self-Sufficiency* If others won’t finance U.S. deficits, the U.S. must:* Stop buying (tighten belts)* Print (inflationary)* Or start making things againV. The Transformation from Consumption to ProductionA. End of the "Consumer" Label* A cultural shift from being consumers to becoming producersB. The Accounting Behind De-dollarization* Trade: U.S. imports (umbrellas), pays via bonds* Now: No bond buyers = must pay in cash or produce domesticallyVI. Restructuring the U.S. Economic ModelA. From Global Dependence to National Industry* Must rebuild manufacturing base* Tariffs protect local industry while it's rebuiltB. Currency Strategy* Weaken the dollar to increase export competitiveness* Lower dollar + energy = key inputs for industrial retoolingVII. Trump’s Approach to Financing the ResetA. Government Fat and Tax Reform* Cut unnecessary spending and government jobs* Subsidize key industries (energy, semiconductors, metals)* Lower taxes for consumers to offset tariff-induced inflationB. Tariffs as Revenue and Leverage* Tariffs replace failed MAC (market access charge) concept* Financial sector resisted MAC post-GFC* Tariffs achieve similar revenue goalsVIII. Tariffs as Strategic LeverageA. Domestic Impact* Tariffs are inflationary for U.S. consumers* But they protect and subsidize emerging domestic industriesB. International Message* Foreign sellers must now pay a “fee” to access U.S. markets* Reframes U.S. consumer base as an asset worth defendingIX. Rebuilding the Supply Chain at HomeA. The Solar Panel Case Study* Example: from silver mining to final product* Entire chain now fragmented and offshoredB. The U.S. Challenge: Onshoring the Full Chain* Mining, refining, manufacturing, and installing must be domesticX. The Other Side: The Global Payment ChainA. Global Supply Chains vs. Payment Chains* China has supply chains; lacks control over payments* U.S. controls SWIFT and dollar-based paymentsB. Weaponizing the Payment Chain* U.S. uses SWIFT dominance to enforce global discipline* Future: other nations must pay ATM-like fees to use SWIFTXI. The BRICS Response: mBridge and MultipolarityA. Building Alternatives to SWIFT* BRICS developing gold/blockchain-backed alternatives* Trust remains the key obstacle—tech isn’t the issueXII. Tariffs + Tax Cuts = Strategic RealignmentA. The Twin Pillars of Trump’s Reset* Tariffs* Raise prices for foreign producers* Collect revenue to subsidize domestic industry* Tax Cuts* Offset costs for U.S. consumers* Fuel domestic growth without raising deficitXIII. The Domestic Political and Economic RiskA. Wall Street vs. Main Street* Tariffs hurt Wall Street, help domestic labor* Services sector shrinks, real economy gainsB. Betting on the American Worker* Trump’s economic strategy: “Bet on America”* Time will tell if it works, but the direction is clearXIV. Final Thought: Reset by Necessity, Not ChoiceA. We Are In the Middle of a Structural Realignment* De-globalization + de-dollarization + de-financialization* Not about liking Trump—it’s about surviving a broken systemB. America Must Produce or Perish* The dollar is weakening* Trust is fading* The only way forward: make, sell, and own what we build This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit vblgoldfix.substack.com/subscribe