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Typical clickbaity headline:
Author answered different question (but, you know, editors like nice, catchy titles!). Here are the three broad candidates:
  • growing worries over the US economy;
  • a potential “Sputnik moment” in Europe (Germany fiscal policy + European financing)
  • and hints of a more determined policy response from China.
Belief in American exceptionalism has been eroded with not only US shares dropping but bond yields falling on growth concerns and the dollar weakening.

"Having dealt with a whiff of stagflation, markets are suffering a good old-fashioned growth scare due to a significant bout of US policy volatility"

U.S. policy volatility:
The worry is that the bumpy journey may lead to a different, less favourable destination. The recent bout of US unpredictability risks robbing the US of one of its important and differentiating “edges” — long-term investor confidence in policy framework and decision making.
OK. Still, pretty awful graph for American exceptionalism:
'
Saw two other charts today (from Nate Silver's publication) that look precisely like a bitcoin chart (#908702):
Interesting times. Money/liquidity rules everything around me.

38 sats \ 1 reply \ @Akg10s3 15h
I liked the phrase...
"Interesting times... Money/liquidity rules everything around me"..
And I also agree with @Bell_curve that bond yields should be positive.
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...I mean, I did just steal that phrase
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Doesn't it make sense that we'd have a big economic correction, with a major shift in economic policy, regardless of what the ultimate growth path will be?
At the very least, a bunch of resources will have to be directed away from import based businesses and towards domestic production.
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I still don't understand what any of that means. That companies will hire Americans to work in factories? Why? Will it be more expensive? And if it is will the goods be more expensive?
And if the 'factories get built' and the Americans can't or won't work in the factories... (due to low pay or the types of jobs) then what, the factories are highly automated?
Employing relatively few Americans or only those with advanced educations... who would probably get jobs anyway?
Mr Trump's whole goal (I think) is to 'employ lots of Americans in factories' NOT necessarily to 'make lots of things'. Making 'lots of things' may not require 'lots of people'... or lots of jobs at least.
So I'm still not sure what Mr. Trumps' goals are... and if he has carefully considered the different potential consequences
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There are lots of open questions, for sure, about how this will play out.
I'm just pointing out that any major change to the structure of the economy will change the profit and loss landscape unevenly, which will mean large resource reallocations.
Transitions like that are costly in the short term, even if the reallocation makes more long term sense (which is an open question).
Basically, the current downturn might not tell us much about whether these reforms make sense or not.
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All I know... is that Bitcoin doesn't change. And that's why I'm here
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Wen QE?
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29 sats \ 0 replies \ @fiatbad 11h
Jeff Ross says... anytime now.
mmm, I love me some Jeff Ross.
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"bond yield falling on growth concerns"
Isn't this a good thing?
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I should clarify: falling bond yields are generally a good thing.
People only lend money at low interest to borrowers with a good reputation or collateral
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