Ray Dalio

their credit into goods and services.

In other words, there's no purpose of holding a bond or an asset unless you can then sell it and get money and buy things.

And when that dynamic works the other way, it's quite painful for the debtor to have to pay back in real stuff.

And then in a geopolitical conflict, that's a problem.

And then, of course, in this environment of conflict, that's

Also, the problem of, it's worsened.

Because in wars and prior times, or even with Russia, then there were freezing of assets, and there could always be that kind of issue.

So that's a consideration.

And then, of course, there's the loss of manufacturing.

And the loss of manufacturing in the United States has two problems, which are that it's connected to self-sustaining.

You have to be able to be in a risky world.

You have to be able to produce what you need, so you need

to be capable in manufacturing certain items.

And then also the loss of the middle class has a lot to do with the loss of manufacturing.

So for those reasons, that imbalance, that let's call it trade and capital account imbalance,

It's both a trade issue and a capital issue.

And raising tariffs is a way of dealing with that.

Through history, tariffs really have been more of a tax than other forms of taxes going way back.

and they bring in tax revenue.

So they'll probably bring in somewhere between 300 million and 500 million a year, something like that, and so that's a consideration.