USA at war with itself and the rest of the world - AmpGFX
|Greg Gibbs, Director at Amplifying Global FX Capital, notes that the unconventional Trump juggernaut continues to fascinate everyone including capital markets.
Key Quotes
“The inauguration speech on Friday was one his most shocking actions to-date, followed by an eye-opening first press briefing by the new White House Press Secretary Sean Spicer.”
“Everyone expected Trump to follow the tradition of using this auspicious occasion to offer a message of hope and unity for the nation, perhaps even provide some sign of cooperation with other nations.”
“However, Trump went the other way and doubled-down on his vision of elites in Washington that he will vanquish and thumped his nose at the rest of the world.”
“He cast himself as a revolutionary leader of a new movement of the “forgotten” common man and woman ready to end the “carnage” of America and the “ravages” of foreign plunderers. He used highly nationalistic language to invoke an image of a USA working class, empowered by God, at war with its own elite and the world. It was a speech that you could easily imagine coming from a despot socialist leader. Shocking.”
“As if to complete the image of a would-be dictator, Trump again cast himself as the victim of a dishonest media that work for the elite. His new White House Press Secretary went out for his first briefing to deliver a long statement lambasting the press for its coverage of the inauguration, noting several ‘alternative facts’, in other words false facts, on the size of the inauguration audience.”
“The USA is beginning to look like it will be at war with itself over the next several years as Trump stirs up divisions between his vision of working class trumpeters and his narrative of on elite in Washington and media accomplices. The faceless enemy includes many people that are currently providing him support such as House Speaker Paul Ryan.”
“A risk for markets over the coming years is simply the stability of government as we wonder if the Republican members of Congress can work with a White House that has cast it as an enemy.”
“A risk for markets is the stability of the Trump administration that has opened war with the media. It must worry markets that a cowered media will fight-back and destroy the credibility of Trump and/or force him into even more ridiculous and aggressive attacks that his veneer of sensible supporters can no longer over-look.”
“This uncertainty is probably contributing to some correction on USD and US yields this year. An image of the USA at war with itself with a President that draws from both ends of the political extreme could drive down domestic and global economic confidence. It is, therefore, generating some support for havens including JPY, gold and to some extent EUR.”
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