"Trust" is "the foundation" of financial systems, and, indeed, all social systems everywhere!
The current President knows full well how untrustworthy he is and cannot function in a world where "trust" is the cornerstone of society!
(between people, agencies, businesses or countries)
He sees all financial agreements as a "zero sum game" where, if the deal is good for the other side, then it must be coming out of his pocket!
He has never really learned that, any "good" business deal, must be good for "both sides"!
He has systemically taught a large segment of fellow Americans to not trust their neighbors if they don't vote for him, not trust their own Government, not trust Government institutions that organize healthcare, education, border security, immigration etc.!
He has manufactured Americans mistrust of each other, their elected officials in Congress and the Senate. He verbally attacks the Courts which have upheld the laws of the country for millennia. He is currently attacking the FED chairman (which he appointed)
He has taught many not to trust immigrants, labelling all as evil, and has actually asked another country to build 4 more "concentration camp" jails to house more people which he will send them, including American citizens.
Now he is teaching America's allies that they cannot trust America as a partner nor trust what he himself has already signed into law as he launches a barrage of tariff's in their direction. They now know instinctively, that he cannot be trusted to uphold previous treaties (NATO) in future.
The markets and market makers are only now coming understand this!
We are all on a path to the total destruction of trust, and it is an existential threat to our way of life, and ominously, peace in the world as many countries are building up armaments now! It doesn't have to be!
The U.S. "dollar" is arguably, the "last bastion of trust" in the world as even enemies will accept it as payment for goods or services. If that trust is lost, then what next?
If the U.S. bond market continues to reveal that "trust" of the reserve currency is weakening, or being lost, then all bets are off.
It becomes a new world of uncertainty and mistrust,
eerily and ominously similar to the 1930s
(Ed Note: This article reflects my own opinions and was not written with the help of AI as are my other posts!)
