Donald Trump wanted to commit himself to the global economy and failed. The US president has to give up after days of financial chaos. What is now sold as a demonstration of power is actually megalomania.
Bastian Brauns reports from Washington
Donald Trump believed that he could force the world and the laws of the economy to his knees with an impending trade war. Instead, however, he brought the global and American economy so much that he had to row back now. Just in time before everything collapses.
Today’s announcement of the US President to suddenly call out a 90-day customs break for most countries (with the exception of China) is expected to be expected to be expected as a sign of strength by the White House and Trump’s finance minister Scott. In truth, however, it is a dramatic withdrawal after days of financial chaos and an annihilation of never-for-existent extent-triggered by the US President himself.
Trump gambled. And lost, even if he and his supporters, of course, show this far away and spin the story of the great dealmaker. You only have to look at what has happened in the past few days:
The world’s stock exchanges crashed. Global indices rushed down. Investors fled into safe investments, away from America. Finally, Trump could have brought in an explosive development: the long -term interest rates rose despite falling stock prices. It was a serious, evil sign of a great danger. According to the very banal risk avoidance rules, the international financial markets seemed to treat the United States increasingly like an unstable emerging market-politically unpredictable, inconsistent, economically risky.
This development was historical. And no coronavirus, no war and no other upheavals were responsible for this. This risky quake was completely caused by Donald Trump. The effects would have been dramatic. The United States is heavily indebted, are continuing for a growing budget deficit and rely on foreign buyers of their government bonds.
He himself currently makes it even clear again how much Trump these serious consequences of his policy obviously sees as a pure game in which he also believes that he can perform as a referee. Just four hours before today’s announcement, he posted Truth Social: “Now the perfect time is to buy !!! DJT”
You have to let it melt on the tongue: the President of the United States, responsible for the current market crisis, calls for the purchase of shares – and four hours later he announces a political decision that lets the markets shoot up again. This is not an economic policy. This smells of state -funded insider trade.
Trump doesn’t just play with the money of the investors – he plays with the stability of the global economy. His motto: only those who believe in their supposed oracle forces can earn money with their erratic decisions and the price movements they trigger. This is no longer capitalism. This is exploitation of political power for personal enrichment. All of this paired with megalomania.
But Trump’s team and the White House spread his version: “The world has begged for negotiations”, hence the break. Not because of the stock market crash. Not because of the dissolving market stability. Not because of panic calls to US financial authorities. No – according to Trump, it was his pure demonstration of power.
The opposite is the case. Today one thing became clear: Trump may be able to control the markets at short notice. But in the end they check it. When capital began to flee from the United States, Trump shrugged for the first time.
So it was good to wait. The EU did not reverse and did not put back massively when Trump announced its global tariffs. No retaliation, no escalation. Now Trump was forced to return – at least partially. The US President was given a lesson whether he learned from it should be questioned. But that’s why the Europeans have to learn. Because Trump remains a risk.
