The bond market is flashing warning lights, inflation refuses to behave, and investors are quietly asking a question nobody in Washington wants to answer... Can America still afford America?
I remember a post when I pointed out that. The markets long for stability and relaiability, excactly that destroyed Trump by his erratic and incomperent policy on all fields. The US influence is already vanishing and it gets harder every day they let that mental heavy sick grandpa in office.
This is a very significant statistic and your statement is clear. It would be even more if you inserted your statistical source. Did not this international lack of trust also have a related effect on the worth of the AMERICAN Dollar?
I think this is all by design, a big shill game, keep it unstable, make quick $$ for the regime. It’s a cash grab by the oligarchs. Destabilizing the markets is the goal. Who weathers it well yet to be seen. Canada is grateful for PM Carney.
I think that the markets will definitely look elsewhere. Canada, as you say, is stable and therefore a good bet. Money markets are the first indicator of a larger problem, and the Dusunited States is heading for a recession and maybe a depression as bad as the Great Depression of last century. Unfortunately Trump seems determined to take the rest of the world with it.
Trump certainly has made the American economy unstable and most of the world doesn’t know what he will try next. I studied economic history at University, it gives a pretty good indicator of what is going to go down soon. I would also bet money on his trying to block the mid term elections .
The GOP Taxpayer Protection Pledge where all Republicants vow to never support tax increases of any kind is so totally shortsighted. It absolutely infuriates me. They will continue to increase the debt, pay higher and higher interest rates while cutting all social services, and this will continue until the entire economy implodes. Instead of raising taxes on the wealthiest people and on corporations, they reduce taxes and thereby their ability to run the government. They all know the day of reckoning is coming, but knowing that the pain will fall on the poorest people in the country, they just don't give a damn. The oligarchs will all survive the fallout just fine. We may be in a better position in Canada, but when the fiscal bomb explodes in the USA, and that day is coming, we won't be able to dodge the fallout.
I remember a post when I pointed out that. The markets long for stability and relaiability, excactly that destroyed Trump by his erratic and incomperent policy on all fields. The US influence is already vanishing and it gets harder every day they let that mental heavy sick grandpa in office.
Klaus, markets can tolerate bad news.
What they struggle with is chaos and unpredictability.
Stability matters because money hates uncertainty.
Once trust starts slipping, rebuilding it gets expensive... fast.
This is a very significant statistic and your statement is clear. It would be even more if you inserted your statistical source. Did not this international lack of trust also have a related effect on the worth of the AMERICAN Dollar?
Yes... it can Georges.
A loss of confidence in U.S. policy, rising debt, and persistent inflation can weaken demand for the U.S. dollar over time.
That said, the dollar still benefits from being the world’s reserve currency, so shifts tend to happen gradually, not overnight.
But trust absolutely plays a role in currency strength.
Full agree.
I think this is all by design, a big shill game, keep it unstable, make quick $$ for the regime. It’s a cash grab by the oligarchs. Destabilizing the markets is the goal. Who weathers it well yet to be seen. Canada is grateful for PM Carney.
Kat, I get why people feel that way... especially when volatility seems to reward the already wealthy.
What I try to watch is incentives and outcomes...
instability can absolutely create winners and losers.
The harder question is whether the chaos is intentional…
or the result of short-term politics colliding with long-term economics.
I think that the markets will definitely look elsewhere. Canada, as you say, is stable and therefore a good bet. Money markets are the first indicator of a larger problem, and the Dusunited States is heading for a recession and maybe a depression as bad as the Great Depression of last century. Unfortunately Trump seems determined to take the rest of the world with it.
Penny, markets are often the first smoke alarm... agreed.
I’m cautious about depression-level comparisons because economies and central banks respond much faster now than in the 1930s.
But recession risk?
That feels a lot more realistic if instability and uncertainty keep piling up.
Trump certainly has made the American economy unstable and most of the world doesn’t know what he will try next. I studied economic history at University, it gives a pretty good indicator of what is going to go down soon. I would also bet money on his trying to block the mid term elections .
The GOP Taxpayer Protection Pledge where all Republicants vow to never support tax increases of any kind is so totally shortsighted. It absolutely infuriates me. They will continue to increase the debt, pay higher and higher interest rates while cutting all social services, and this will continue until the entire economy implodes. Instead of raising taxes on the wealthiest people and on corporations, they reduce taxes and thereby their ability to run the government. They all know the day of reckoning is coming, but knowing that the pain will fall on the poorest people in the country, they just don't give a damn. The oligarchs will all survive the fallout just fine. We may be in a better position in Canada, but when the fiscal bomb explodes in the USA, and that day is coming, we won't be able to dodge the fallout.