From “Bond market revolt signals fading confidence in U.S. economic leadership”, Nicholas Spiro in the South China Morning Post:
Two years ago, the prospect of a trade war between the United States and Canada, two of the world’s most closely integrated economies, would have been unthinkable. However, US President Donald Trump’s recklessness and capriciousness know no bounds.
Last week’s breakdown in negotiations between the North American neighbours, which triggered the imposition of US tariffs of 50 per cent on a wide range of Canadian goods, showed the degree to which Trump’s trade policies are vindictive, politicised and self-defeating.…
My comments:
1. US. Markets vs China Markets
If you’re invested in the U.S. stock market, say the S&P 500, you are up 12.3% so far this year, and up 18.7% over the same day a year ago.
If you’d been in the Chinese market, say an index fund like the MCSI, you’re down 7.5% over the last year.
Which economy is doing best, based on the value of their companies judged by the world? Which result “signals fading confidence”? The one run by China, or the one run by the “reckless and capricious” Donald Trump?
To answer my own question: China is Net Negative -26.2 percentage points compared to America. If there is any “fading confidence”, the figures suggest it’s in Chinese and not American economic leadership.
2. “Wall Street is not Main Street”
Really? 58% of Americans are invested in the U.S. stock markets. In China, the figure is 13%. Wall Street affects Main Street. Wall Street doing well = Main Street doing well.
3. Debt fuels Bond rate rises
Who made an effort to reduce debt after the Brobdingnagian Biden Blow Out? Trump and his DOGE, run for a while by Elon Musk.
Who reacted with violent fury to this attempt to control government Waste, Fraud and Abuse? The Dems.
Their acolytes fire-bombed Tesla showrooms, vandalised Tesla cars, destroyed Supercharging stations. Senior Democratic politicians (I’m thinking of you, Tim Walz) openly prayed for the failure of America’s most successful EV car company. They pined for SpaceX, founded by Musk, the only viable American rocket company, to blow up.
Left-aligned NGOs funded non-stop nationwide protests, often violent, to block the Trump administration reducing government expenditure. Oh, the hand-wringing over cuts to USAID! Cry me a river….
And all because they could not abide cuts in money flowing to their own little piggie-troughs. That is greed-driven political malpractice at a disgusting level.
Commenters the likes of this Nicholas Spiro fellow always ignore uncomfortable facts like these. Because they confirm their complicity.
Still, let’s lean over backwards to say: At best, both parties are responsible for the vast government profligacy. It is nonsense to blame Trump and Trump alone.
Those are my thoughts on: Fading Confidence in U.S. economic leadership By Nicholas Spiro. South's China Morning Post.
