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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsOpinion: Roubini: President Trump is flirting with mutually assured economic destruction
NEW YORK (Project Syndicate) Financial markets have finally awoken to the fact that Donald Trump is U.S. president. Given that the world has endured two years of reckless tweets and public statements by the worlds most powerful man, the obvious question is: what took so long?
For one thing, until now, investors had bought into the argument that Trump is all bark and no bite. They were willing to give him the benefit of the doubt as long as he pursued tax cuts, deregulation, and other policies beneficial to the corporate sector and shareholders. And many trusted that at the end of the day, the adults in the room would restrain Trump and ensure that the administrations policies didnt jump the guardrails of orthodoxy.
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As matters stand, the risk of a full-scale geopolitical conflagration with China cannot be ruled out. A new cold war would effectively lead to de-globalization, disrupting supply chains everywhere, but particularly in the tech sector, as the recent ZTE and Huawei cases signal. At the same time, Trump seems to be hell-bent on undermining the cohesion of the European Union and NATO at a time when Europe is economically and politically fragile. And Special Counsel Robert Muellers investigation into Trumps 2016 election campaigns ties to Russia hangs like a Sword of Damocles over his presidency.
Trump is now the Dr. Strangelove of financial markets. Like the paranoid madman in Stanley Kubricks classic film, he is flirting with mutually assured economic destruction. Now that markets see the danger, the risk of a financial crisis and global recession has grown.
.... more at https://www.marketwatch.com/story/roubini-president-trump-is-flirting-with-mutually-assured-economic-destruction-2018-12-28
HopeAgain
(4,407 posts)What is good for corporate America (decreased taxes, deregulation) isn't neceesarily good for the rest of us. An economy based on general standards of living, conservation, renewables and less wealth disparity wouldn't be so subject to manipulation and mismanagement as the current stock market.
.. there were an economic system geared to the benefit of society and not this Ponzi capitalism we are saddled with.
edhopper
(33,479 posts)comrade
BBG
(2,526 posts)And more Main Street.
I was just making a communism joke.
But we need the European model of Democratic Socialism here for sure.
Was trying to come back with a witty repartee myself but moving slow today.