Paul Krugman's mental models

Their wordsAside from the outrageous nature of his demands, Trump’s remarks were interesting because they reveal the extent to which refined products, especially diesel, have replaced crude oil as the key bottleneck in the global energy crisis.

Their wordsIt has been clear from the beginning that a primary motivation for tariffs was that they empowered Trump personally.

Their wordsThe simplest story consistent with the facts is that we’re seeing a surge in demand for funds as a result of the AI boom.

Their wordsSo a diesel export ban would probably do little to assuage U.S. concerns about affordability. It would create uncertainty that deters business investment, in energy and other industries. And it would further weaken America’s hand in its geopolitical rivalry with China over energy.

Their wordsThat is, the Canadian economy isn’t a miniature version of the U.S. economy, producing the same mix of stuff on a smaller scale. Instead, Canada concentrates on producing a limited range of goods.