Liam Dann: Risk of another GFC rises as US-China trade war takes world to the brink
- The US-China trade war has escalated, with the US imposing a 145% tariff on Chinese imports and China responding with an 125% tariff.
- The crisis has caused volatility in bond markets, raising global economic concerns.
- If the US and China can’t reach a deal the consequences for the global economy will be dire
As Trump flies in the face of a century of Western Foreign Policy and Economic alignment, punters are increasingly asking if Trump is crazy…
Fund Managers Worry Trump Might Be “Insane”
As Donald Trump’s tariff plan slams the stock market, investors are beginning to wonder if the president doesn’t have some broader economic agenda—but rather if he’s just mentally ill.
“In the last few days, we have had many conversations with macro fund managers,” wrote Tom Lee, the head of research at the financial analysis firm FSInsights.
“And their concern is that the White House is not acting rationally, but rather on ideology. And some even fear that this may not even be ideology,” Lee continued. “A few have quietly wondered if the President might be insane.”
…MAGA Apologists will scream Trump has ‘owned the libs’ by turning on Free Trade that the libs have traditionally protested against as if that is some insight to the genius of Trump.
Of course Free Trade has always been problematic to the domestic working classes displaced by it but the true danger that the Left have always feared with Free Trade are the contracts empowering Trans National Corporations eroding our economic sovereignty.
That’s not the fight Trump is waging here, this is chaos to enable a military strike against Iran!
There is just no way shape or form that the market has actually priced in the true damage of the Tariffs because they are so huge everyone believes it must be a bluff.
China just hiked their tariffs to 125% from 84% and they are with laser like precision hurting Trump in ways he didn’t anticipate by dumping their enormous holdings of Treasury Bonds and lessoning their demand globally for the American Dollar while propping up the Yuan…
Bond analysts debate if China had role in Treasuries yield swings
…and the Chinese have told all Banks to dump the American Dollar…
China’s central bank calls on state banks to reduce US dollar purchases
…which has led to Bond market collapse…
The bond market got “queasy” — and it spooked Trump
…and the drop in the American Dollar…
US dollar falls to weakest level against the euro in 3 years
…we are in a Trade war between America and China right now.
The only reason the market hasn’t gone full meltdown is because 145% tariffs vs 125% tariffs between the two largest Economy’s on the Planet is just too nightmarish a scenario to contemplate so they have convinced themselves it’s all a ‘Art of the Deal’ Bluff.
Trump thinks God saved him from assassination and that God is on his side, so he will take risks others wouldn’t and he’ll make them not for clear cut goals, but for some religious quest he thinks God saved him for, like a white Christo-fascist Super State stretching from the Panama Canal to Canada to Greenland.
Trump’s people have grossly miscalculated the Chinese response. They told Xi not to retaliate and to call Trump, bow the knee and the tariffs are dropped. The problem is Xi will refuse point blank to bow the knee, won’t call Trump first and in fact retaliated. Trump’s idiots have jumped on the back of a dragon and don’t know how to get off without getting eaten! If this had been Art of the Deal bullshit bluffing, Trump’s morons have inadvertently placed themselves at the mercy of Xi who has zero intention of letting Trump get away with this and will find a global economy wanting to trade with China and not America.
The really bleak truth is that while this is all happening in the foreground what is happening in the background is getting missed.
Trump is about to green light Israel to attack Iran’s nuclear facilities with the help of the US.
A second Carrier Group has arrived in the Middle East alongside an enormous build up of Stealth Bombers…
Are B-2 bombers a message to Iran? ‘We’ll let them decide,’ Pentagon chief says
…US envoy Steve Witkoff is meeting Putin to alert Russia of their intentions on this matter while America is forcing Iran to meet with them this Weekend…
White House insists talks between US and Iran this weekend will not have a mediator
…America will demand Iran removes all capacity for a nuclear bomb or else, Iran will tell America to fuck off, Israel and Trump will bomb Iranian nuclear facilities and then Trump will use that military action as a threat over trade negotiations.
Trump can not build, he can only destroy.
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Trump is all over the place and it’s vomit inducing that all these idiots who support him say this all planned. What a load of absolute bullshit. He is an unhinged corrupt bastard. Art the deal my arse.
Yep, Trump and co. are playing 4D chess… they don’t know the rules or strategies, but they are playing anyway.
Americans are blinded by their own perception of exceptionalism and hubris, scratch between the surface and all indicators reveal its a failed state and society. By all metrics they lag behind other developed Western nations except wealth selling services instead of quality goods. There biggest exports are war, obesity and wokeness.
They also love to export shit sitcoms…
One only needs to hear Trump talk to declare him simple. Only daddy’s money has got him where he is today.
“Only daddy’s money has got him where he is today.”
Rather, it’s USA’s national character traits that allowed the sociopath to get to where he is.
Trump is 100% made in USA.
To be fair to trumpy, he may have a concept of an ideology.
Trump does seem insane.
Have you already forgotten that the 100% safe and 100% effective Covid vax that definitely saved millions was only due to Trump’s Operation Warp Speed program?
Also Canada Japan and The European union hold $3.5 Trillion Dollars of USA treasury bonds.
If trump doesnt back off they let it be known they would call the debts in and buy no more USA treasury bonds. That was the reason for trumps latest back off. The USA would be screwed overnight if the world stopped buying the treasury bonds due to the USA’s excessive trillions of dollar debt. So much for trumps art of the deal. Now Trump wants to do 90 trade deals in 90 days. HE IS BLOODY INSANELY MAD.
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