technology

but reindustrializes the country like Stalin.

This is not going to happen:

1. The Wall Street finance capital will not allow it
2. The US spent decades killing trade union movements by de-industrializing itself, it’s not going to want to have to deal with labor movements once again
3. Trump has no industrial policy, is cutting federal government funding on key sectors especially academia and sciences, and mass laying off federal employees

Does this look like re-industrialization to you?

What is happening with Trump’s global tariffs is becoming clear though:

The US is leveraging China’s vast industrial capacity to destroy the European economy. Have you noticed that European car manufacturers and green tech sector are being destroyed by China’s vastly cheaper and superior products?

Yeah, good luck dealing with that. The EU economy is cooked, and what’s going to happen is a massive harvest by US finance capitalism as they did to the USSR 30 years ago.

Perhaps it will be like what Varoufakis says, the EU will be coerced into de-industrializing itself and import from the US manufacturers, swapping the role with the US to prop up whatever is left of the US industrial base.

Meanwhile, Trump’s tariff is forcing China to dump its surplus export goods on the rest of the Global South. The latest trade numbers on China’s export shows that its export has grown 8.3% yoy in September!

What this means is that we’re about to see a full blown mercantilist fight in the Global South as many exporter countries find their domestic industries unable to compete with the cheap Chinese goods flooding their countries, so they have to either make a deal with the US, or be forced to take IMF/foreign loans to bail out their failing economy. And by doing so, the US reshapes the global supply chain through its finance capital as we see a bailing out through IMF/foreign loans on a scale never seen before (Argentina is taking a lead on that).

The above is only made possible because:

1. The Ukraine war has destroyed Europe’s energy sovereignty and negated their ability to expand the EU consumer market to replace those of the US
2. Covid pandemic has stalled China’s attempt to transition into a domestic consumption led economy, and with the investment-led property bubble bursting, forcing it to return to relying even more on exporting EVs and solar panels to make up for the drop in GDP growth

The only way out of this is for China to abandon the neoliberal export-led growth model, run up its fiscal deficit (by giving jobs guarantee) to offset the loss in export and investment to drive up a 1.4 billion consumer market that capable of absorbing the global surplus capacities.

This will stop the exporter countries’ reliance on selling to the US, and when countries no longer have to run a trade surplus against America, the dollar becomes useless. This is how you properly de-dollarize.