Keep pulling the thread on United States.
Alfonso Peccatiello's thesis is that the Trump administration's primary goal is to rebalance global capital flows, which have favored the US for the last 20 years, in order to weaken the US dollar.
Alfonso Peccatiello asserts that the Trump administration's geopolitical pressure has successfully prompted Germany to commit to nearly €1 trillion in fiscal spending.
Brent Donnelly suggests the Trump administration could weaken the dollar by revoking the tax-exempt status for foreign sovereign wealth funds and government entities holding US assets.
Alfonso Peccatiello theorizes the US could implement 'tariffs on money' by imposing a tax on foreign official investors, like central banks and sovereign wealth funds, when they purchase US Treasuries.
ECB governing council member Robert Holtzmann has expressed support for using quantitative easing (QE) to finance defense spending.
In a previous instance, the Trump administration announced a 25% tariff on Canada but later exempted goods covered under the USMCA agreement, which accounted for 50-70% of goods.
A Canadian company selling automated packaging machines, with 80% of its business in the US, has experienced a surge in orders as clients front-load purchases ahead of potential tariff announcements.
Brent Donnelly believes that US clients of a Canadian packaging machine company have already purchased their required inventory for the next 12 months to preemptively avoid potential tariffs.
Canada's defense spending currently amounts to only 1.4% of its GDP, below the NATO target.
Alfonso Peccatiello predicts the Trump administration will pressure Canada to increase its defense and fiscal spending.
The China Investment Corporation (CIC) is a massive sovereign wealth fund with substantial holdings in US equities.
To counteract foreign selling of US Treasuries, Alfonso Peccatiello suggests the US government could reform the Supplementary Leverage Ratio (SLR) for US banks, enabling them to absorb the supply.