This episode explores the economic implications of Donald Trump's policies, particularly in the context of the Milken Institute Global Conference, contrasting the sense of normalcy among financial elites with global concerns about trade wars and the international order. Niall Ferguson draws historical parallels to William McKinley, Franklin D. Roosevelt, and Richard Nixon, suggesting Trump's actions reflect a perceived weakening of the U.S. and a desire to revive Nixonian strategies. Fareed Zakaria highlights the rise of cultural politics over traditional economic divides, the Republican Party's transformation into a cult of personality, and unprecedented levels of corruption. The discussion pivots to the feasibility of decoupling from China and reindustrializing the U.S., with Ferguson expressing skepticism due to established economic trends and Zakaria arguing the U.S. already leads in the service economy. Despite potential risks, Ferguson notes the U.S. economy's anti-fragility and the possibility of a "Mar-a-Lago accord" leading to a weaker dollar and lower interest rates. The conversation concludes with a discussion of the tension between ending foreign entanglements and confronting China, with both Zakaria and Ferguson weighing the potential for a Taiwan crisis and the long-term impact on America's global alliances and economic standing.
