Hi everyone, welcome to my new YouTube Community. Now you can post on my channel too. To get started, tell me in a post what you'd like to see next on my channel. Visit my Community: youtube.com/@wernermouton/community
A mainstream economist will tell you that minimum wage cannot be increased. It violates the law of supply and demand. He sounds clever. He talks as if this is a law like gravity. It is not.
This week, three things happened at once. In Davos, a prime minister said the rules-based order is finished. In Tokyo, the bond market moved before the central bank did.
At the same forum, a new institution was signed into existence that routes around the UN.
The Forces Letter looks at what connects them and what it means for strategy.
We are told that countries are negotiating access to the U.S. market. But what is being exchanged is not goods. It is deference—an enforced submission to economic power.
These nations are not just trading; they are being made to yield economic autonomy, to pledge massive investment, and to comply with one-sided terms, not as equals, but as subordinate participants in a system that rewards acquiescence over reciprocity.
Bilateral agreements now hinge on investment pledges—hundreds of billions, not because they make economic sense, but because they buy down tariffs.
South Korea pledges $350 billion. Japan: $550 billion. The EU: $600 billion. Not as a strategy. As leverage.
This is not the opening of global markets. It is the monetization of coercion.
This episode examines the structural logic behind the new U.S.-EU trade deal. At the surface: a 15% tariff on European exports, framed as a victory for balance. But beneath that surface lies a deeper contradiction—between how trade deficits are perceived and how they actually function.
We trace the system that sustains the U.S. trade deficit: not as a policy failure, but as a reflection of capital inflows, reserve currency demand, and domestic consumption fueled by external financing. Tariffs do not alter this structure. They tax the symptom without addressing the cause.
For Europe, the deal institutionalizes asymmetry. Energy purchases and investment pledges were exchanged for conditional market access—while core industries now face structural disadvantage. This is not reciprocity; it is compliance under leverage.
We follow how these dynamics redistribute risk, suppress industrial policy, and displace production from Europe to the U.S.—with long-term political consequences.
What’s at stake is not just trade. It’s autonomy, institutional coherence, and the ability to govern the terms of economic adjustment.
This is not a trade war. It’s the normalization of managed imbalance.
Werner Mouton
Trump indicted Raúl Castro. Castro is accused of ordering two airplanes to be shot down in 1996, killing 4 people.
Trump sank alleged drug-smuggling boats in the Caribbean and the eastern Pacific and killed nearly 200 people.
Trump ordered an attack on Iran and on day one a US Tomahawk missile struck a school in Minab and killed 120 kids.
Trump gives Netanyahu money and bombs and he helped raze Gaza.
Netanyahu’s army killed 23,000 kids in Gaza.
Why Cuba? Why Castro?
Why not Netanyahu?
5 months ago | [YT] | 0
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Werner Mouton
Iran wants a toll system for ships sailing through the Strait of Hormuz.
Marco Rubio said this makes diplomacy difficult.
Maybe the 120 kids killed in Minab when a Tomahawk missile struck their school makes diplomacy difficult.
5 months ago | [YT] | 0
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Werner Mouton
Hi everyone, welcome to my new YouTube Community. Now you can post on my channel too. To get started, tell me in a post what you'd like to see next on my channel.
Visit my Community: youtube.com/@wernermouton/community
5 months ago | [YT] | 0
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Werner Mouton
Welcome here.
I’ll use this space for short notes, questions, reading fragments, and thoughts behind the videos.
The channel is about political economy, current affairs, and the ideas that help us understand how power shapes ordinary life.
Nothing too formal. Just a place to think a little more clearly together.
— Werner
5 months ago | [YT] | 0
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Werner Mouton
Every Sunday, one essay on power, money, politics, and the economic forces that shape how people live.
www.wernermouton.com/newsletter
6 months ago | [YT] | 0
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Werner Mouton
A mainstream economist will tell you that minimum wage cannot be increased. It violates the law of supply and demand. He sounds clever. He talks as if this is a law like gravity. It is not.
6 months ago | [YT] | 0
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Werner Mouton
Political Economy with Werner Mouton is live on Ko-fi. Politics, economics, markets. Follow for more.
ko-fi.com/politicaleconomy
6 months ago | [YT] | 0
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Werner Mouton
This week, three things happened at once. In Davos, a prime minister said the rules-based order is finished. In Tokyo, the bond market moved before the central bank did.
At the same forum, a new institution was signed into existence that routes around the UN.
The Forces Letter looks at what connects them and what it means for strategy.
www.wernermouton.com/newsletter/edition-1-26-janua…
9 months ago | [YT] | 0
View 0 replies
Werner Mouton
We are told that countries are negotiating access to the U.S. market. But what is being exchanged is not goods. It is deference—an enforced submission to economic power.
These nations are not just trading; they are being made to yield economic autonomy, to pledge massive investment, and to comply with one-sided terms, not as equals, but as subordinate participants in a system that rewards acquiescence over reciprocity.
Bilateral agreements now hinge on investment pledges—hundreds of billions, not because they make economic sense, but because they buy down tariffs.
South Korea pledges $350 billion. Japan: $550 billion. The EU: $600 billion. Not as a strategy. As leverage.
This is not the opening of global markets. It is the monetization of coercion.
1 year ago | [YT] | 0
View 0 replies
Werner Mouton
This episode examines the structural logic behind the new U.S.-EU trade deal. At the surface: a 15% tariff on European exports, framed as a victory for balance. But beneath that surface lies a deeper contradiction—between how trade deficits are perceived and how they actually function.
We trace the system that sustains the U.S. trade deficit: not as a policy failure, but as a reflection of capital inflows, reserve currency demand, and domestic consumption fueled by external financing. Tariffs do not alter this structure. They tax the symptom without addressing the cause.
For Europe, the deal institutionalizes asymmetry. Energy purchases and investment pledges were exchanged for conditional market access—while core industries now face structural disadvantage. This is not reciprocity; it is compliance under leverage.
We follow how these dynamics redistribute risk, suppress industrial policy, and displace production from Europe to the U.S.—with long-term political consequences.
What’s at stake is not just trade. It’s autonomy, institutional coherence, and the ability to govern the terms of economic adjustment.
This is not a trade war. It’s the normalization of managed imbalance.
www.patreon.com/posts/tariffs-deficits-135363741?u…
1 year ago | [YT] | 0
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