Vance, known for his book "Hillbilly Elegy," has focused on the decline of the Rust Belt and has consistently linked the dollar's reserve status to the hollowing out of manufacturing since entering the Senate. In 2023, he first systematically proposed the framework of "subsidizing consumers, taxing producers" during his questioning of Federal Reserve Chairman Powell, and has repeatedly reinforced this logic in his campaigns and governance.

In terms of capital pathways, his policy direction aims to reduce the attractiveness of imports and enhance export competitiveness through tariffs and potential exchange rate adjustments, motivated by the goal of redirecting global capital from U.S. Treasuries and Wall Street back to domestic manufacturing, strategically serving the goal of reindustrialization rather than maintaining cheap financing privileges.

Similar cases can be seen in the long-standing arguments of scholars like Michael Pettis, who assert that reserve currencies lead to current account deficits and industrial imbalances, as well as the Trump administration's preference for a weaker dollar. The current U.S. policy debate is transitioning from "maintaining hegemony" to "reflecting on burdens."

Structural judgments belong to the transfer of pricing power: because the reserve currency status forces the U.S. to export dollar liquidity and absorb global savings, it mechanically raises the domestic currency exchange rate, suppresses exports, and amplifies consumption. Once policies actively weaken this status, pricing power will shift from global capital back to domestic production, forcing trade and financial structures to transition from deficit-driven to balance-driven.

ABAB News · Law of Cognition

Privilege is often another way of describing burden.
The cost of cheap consumption is industrial hollowing.
Currency status determines who loses manufacturing power first.