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Eric Basmajian, industry influencer, raises concerns about potential de-industrialization in the U.S. if so-called permanent swap lines are not extended to the defense industrial base.
Basmajian questions why anyone would invest in U.S. manufacturing when Bessent is providing cheap dollar funding to support lower-cost competitors around the world. He warns that such a policy could further erode the country's manufacturing sector.
Luke Gromen recently analyzed the performance of the 10-year U.S. Treasury yield and oil prices following Secretary Bessent's February 2025 comments on dollar funding in a previous report. In a separate update, Gromen reported that non-monetary gold was the United States' largest export for four out of the last five months according to trade data. These pieces provide additional context for current concerns about U.S. manufacturing and trade policy.