Unraveling of the Global Order? | Rana Foroohar
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Welcome to Bankless, where we explore the frontier of Internet money and Internet finance. And today, we are exploring the continuing saga of the Liberation Day tariffs. On the show today, I have a traditional finance commentator, Rana Foroojar. She's a Feet columnist. She's a CNN economic analyst, and she has a wealth of knowledge on capital markets and geopolitics. We start the conversation today discussing Donald Trump attempting something that no one has ever attempted before, which is materially, credibly attempting to unwind the global world order by upending the Triffin dilemma, threate
for having me. Okay.
Rona, I wanted to set the stage a little bit because I think all of our listeners are all glued to the screens of the tariff debacle, tariff drama, whatever is going on in the macro markets. Yeah. This is, a subject that we have been following over the years at Bankless. Really as we are understanding, why and how Donald Trump got elected in the first place in in 2016, not this most recent election, but he really just flipped some key blue states in the Rust Belt, to to red, by his appeal to voters that experienced substantial manufacturing job losses. These are state the jobs and states, Mich
Yeah. For sure. No. I mean, I think you did a really good job sort of outlining the key macro issues here. You know, I think that this process, in in some ways, we began to be, a little bit suspicious, I would say, in 02/2008, some of us did, that, Maybe we need a new global order here. You know, the entire financial system just collapsed. We have a very financialized economy in America. And by that, I mean that it's based on asset price growth rather than, you know, making things in factories, let's say, and and bolstering wages. And and then you start thinking about, well, why is that? And p
And so I wanna get your opinion on the relationship between the the nature and the decisions of Donald Trump versus the correction of that pendulum. I think largely, we are we are understanding that this pendulum is in a suboptimal place, and we should find a more optimum place for that pendulum to lie. Like, maybe the global globalization has done has brought its good to the world, and now we are seeing that start to invert. And maybe maybe now the cost of globalization are starting to rear its head, and so we should fix things. Yeah. And that's what's what Donald Trump understands, what he w
Right. So I would I would, differentiate between Trump one and Trump two there. So Trump Trump one, you know, you got Bob Lighthizer, who was the USTR, coming in and saying, we need a reset of the global trading system. You know, it was it was a little bit outre at the time, but a lot of people now agree with that. Tariffs on China, again, a lot of people agree with that. You then get Biden coming in, continuing the tariffs on China, but layering an industrial strategy on top of it and saying, we need more resilience for the reasons I just talked about. You wanna make masks. You wanna make pha
Yeah. You, I think the million dollar question, the billion dollar question that everyone is asking is, are these tariffs real? When when we net net, when we fast forward three, six months, what tariffs are still in place, if any? Because I remember Donald Trump doing this in 2016. We started the presidency off with a wave of tariffs, and then that just became irrelevant and the markets moved on. This is being a little bit different. Like I said, this is the most credible and legitimate, move towards unwinding this order, and the tariffs have just been 10 times larger, a hu
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