The concept that reassures Wall Street and bristles Donald Trump – Liberation

Make a counter analysis a theory synthesized by a formula or, better still, an acronym: here are the basics of marketing. And their practice, by an editorialist of Financial Timesapplied to the governance of Donald Trump. THE daily statements of the American president, especially in terms of economic policypanic the financial markets around the world, and in particular the bankers of the big apple? Let us stop panicking, in substance in substance Robert Armstrong in his post dated May 2entitled « The surprise return of the American market … and the rise of the theory of Taco trade ».

The acronym imagined by the journalist means « Trump Always Chickens Out »that we will translate by « Trump always deflates ». What deduce the following reasoning: « The markets realize that the American administration does not have a strong tolerance for economic and stock market pressures, and that it will be quick to retreat when customs duties will make people suffer, » he writes. Supporting example: April 9, The American president had already retracted By deciding on a break on very high reciprocal customs duties, which he wanted to impose on the rest of the world, faced with the considerable losses recorded at Wall Street.

Two weeks lateron April 23, the same mentioned a « Substantial drop » customs duties with China, and a « Fair agreement ». A truce in the trade war started with Beijing, which had given air to the financial markets. And no later than last week, Donald Trump announced the entry into force on June 1 of customs duties to 50 % on imports from the European Union, before finally decree, two days later, a break until July 9. The Taco theory could therefore be summarized very simply: whatever he says, the US head of state remains subject to the good health of the scholarship.

But this unflattering metaphor evoking helplessness in every sense of the word has, in a very surprising way, not at all pleased to the star of masculinists. « I am deflating myself ? ! I have never heard that! «  he got angry with the journalist who questioned him about the new favorite acronym of the traders on Thursday, May 29, denouncing what was for him « A dirty question ».

So should we really expect the Head of State to let himself be humiliated by Wall Street, in addition to being limited in his protectionist impulses? The inventor of the concept seems to be afraid of having gone a little too far. « I am a little afraid that now that he knows the sentence and that he will take him in his head, he stops deflating, which is exactly the result that I do not want »,, He was worried in an interview on Canadian radio CBC. « There is a horrible, extremely unlikely but horrible scenario, in which I have just caused a global recession by making a silly joke », he adds in a podcast of Financial Times.

A possibility that analyst John Hardy valid, responsible for the macroeconomic strategy at the Danish investment bank Saxo. « Donald Trump can actually deflate at times, but his underlying policies are very real and constitute a very serious change in the economic and industrial policy of the United States », he notes in an article cited by AFP. Fortunately, In Marketing We Trust.