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Trump’s Emerging Market Behavior Is Unsettling Investors

edited August 16 in Off-Topic
I've been pondering recent government intervention in the private sector
and pernicious threats to the Federal Reserve's independence.
This is not how capitalism should work in developed countries, particularly the United States!
The following excerpts are from a very informative Barron's story by Reshma Kapadia.

"Investors have typically penalized emerging markets such as Turkey, Argentina,
and China due to concerns about the independence of the central bank,
government intervention in the private sector, and rampant overspending."


"Now economists and strategists are raising similar concerns about the U.S.,
which has historically been the paragon of a developed market.
They see unnerving parallels to emerging markets in the actions that President Donald Trump is taking
in his second term, as he uses the power of the White House in unconventional ways to swiftly upend
geopolitical and economic norms."


"In just the past two weeks, Trump has put new pressure on Federal Reserve Chair Jerome Powell
to cut interest rates, warned judges to not rule against his tariffs, fired the head of the Bureau of Labor Statistics
after unflattering revisions to job numbers, called for the ouster of the chief executive of Intel,
and sought unprecedented concessions from companies and countries that want to access U.S. markets
or avoid export restrictions."


https://www.msn.com/en-us/money/markets/trump-s-emerging-market-behavior-is-unsettling-investors-how-it-could-hit-markets/ar-AA1KuCLB

Comments

  • edited August 16
    The following excerpts are from a WSJ story by Greg Ip published several days ago.

    "A generation ago conventional wisdom held that as China liberalized, its economy
    would come to resemble America’s. Instead, capitalism in America is starting to look like China."


    "Recent examples include President Trump’s demand that Intel’s chief executive resign;
    the 15% of certain chip sales to China that Nvidia and Advanced Micro Devices will share with Washington;
    the 'golden share' Washington will get in U.S. Steel as a condition of Nippon Steel’s takeover;
    and the $1.5 trillion of promised investment from trading partners Trump plans to personally direct."


    "This isn’t socialism, in which the state owns the means of production.
    It is more like state capitalism, a hybrid between socialism and capitalism
    in which the state guides the decisions of nominally private enterprises."


    "China calls its hybrid 'socialism with Chinese characteristics.'
    The U.S. hasn’t gone as far as China or even milder practitioners of state capitalism such as Russia,
    Brazil and, at times, France. So call this variant 'state capitalism with American characteristics.'
    It is still a sea change from the free market ethos the U.S. once embodied.
    "


    https://www.msn.com/en-us/news/world/the-u-s-marches-toward-state-capitalism-with-american-characteristics/ar-AA1KibTC
  • “Another good week for the country.” LOL so much winning
  • edited August 17
    You have to realize that Trump doesn't regard himself as the president of a democracy. He treats the United States of America as if the entire country is nothing more than his private company, to run and rule any damned way that he feels like. (Subject to change without notice, of course.) Since it's his company, he makes the rules. If there are laws limiting his ability to do that, he has a large number of assistants to help him evade or ignore those restrictions.

    With that mindset he regards the heads of all other countries as being similar "executives", and therefore "competitors". This explains his appreciation of other "executives" who run their countries in a similar manner.

    Viewed from this perspective there's really no contradiction between his animus towards China as a competitor, and his admiration for certain aspects of Xi Jinping's leadership.

    The same thing applies to Russia, North Korea, Saudi Arabia, and any other country with a leader of similar mindset.
  • @Old_joe. +1. It won’t end will.
  • Bob Pisani wrote an article dated 8-12-2025 entitled "On assholes and how to deal with them", but it really didn't address the grand poobah directly.

    I think OJ's summary above hits the nail on the head with "He treats the United States of America as if the entire country is nothing more than his private company". And he raids the company's war chest to the detriment of it's shareholders (all US citizenry).
  • Yes, he thinks of anything and everything in terms of the benjamins, that is all. Public service???? What's THAT? It does not compute for him. It's like:

    2+2=fish. (Stole a line from "The Big Short.")
  • edited August 17
    At least Millennials are finally waking up!!!!

    Bold added:

    https://www.newsweek.com/donald-trump-approval-rating-polls-millennials-2113610
    President Donald Trump's approval rating has plummeted with millennials, hitting its lowest level of the year in August, according to new polling.

    "According to YouGov/Economist polling, in June, 40 percent of millennials approved of Trump's job performance while 53 percent disapproved—a net rating of -13 points. That slid to 41-57 (-16) in July before plunging to 33-56 (-23) in August."
  • edited August 17
    "'Millennials have yet to see the sweeping national renewal Trump promised,' Thomas Gift,
    an associate professor of political science and director of the Centre on US Politics
    at University College London, told Newsweek."


    Trump is all hat and no cowboy regarding issues "regular" folks consider important.
    I wholeheartedly approve of the millennial's disapproval! ;-)
  • That's approved... Maintain present attitude and advise any further change in flight plan.
  • edited August 17
    Old_Joe said:

    That's approved... Maintain present attitude and advise any further change in flight plan.

    :)
    Suppose I might request a more positive attitude. Going down ….

  • Time to grab the vodka. I've been putting it off... The Orange Criminal Sludge is ruining my life, worse than George Steinbrenner ever did.
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