Donald and the Delusion Discount: Markets are treating Trump as crazy but harmless.
Donald and the Delusion Discount
Markets are treating Trump as crazy but harmless.
https://www.nytimes.com/2019/06/10/opinion/trump-trade-tariffs.html?action=click&module=Opinion&pgtype=Homepage
Paul Krugman
June 10, 2019
The events of the past few weeks destroyed whatever credibility Donald Trump may still have had on economic policy. And investors are celebrating. At this point, evidence that Trump tweets are sound and fury signifying nothing is, in effect, good news.
Lets review what happened. First, having gone to great lengths to get a new trade agreement with Mexico and Canada an agreement that was very similar to the existing agreement, but one he could slap his own name on Trump basically blew up his position by threatening to impose new tariffs unless Mexico did something about border issues that have nothing to do with trade.
This obviously weakens if it doesnt destroy Trumps ability to negotiate future agreements, on trade or anything else. After all, whats the point of making deals with an administration that reneges on its promises whenever it feels like it?
But then, barely a week later, Trump called the whole thing off in return for a statement by Mexico that it would do
things it had already agreed to months earlier. .................................